The Smart Marty Sky Dispatch
New study finds airline competition and airport capacity drive air fares – not airport charges
Oxera analysis of nearly 6,000 routes highlights the need for airport slots reform Brussels: As the European Commission carries out its Fitness Check of the EU Airport Charges Directive and Airport Slots Regulation and with airport slots rules also being debated in the UK, a new study released today challenges the long-standing assumption that lower […]
A new study released today challenges the assumption that airport charges are the primary driver of air fares. The analysis focuses on nearly 6,000 routes and examines factors beyond charges.
The research highlights competition among airlines and the capacity of airports as influential forces shaping ticket prices. It suggests these elements may play a larger role than previously thought in determining how much passengers pay.
The findings come as the European Commission reviews the EU Airport Charges Directive and the Airport Slots Regulation, with discussions on slots rules also taking place in the UK. The study aims to inform these regulatory considerations.
According to the summary, the analysis supports the idea that improving competition and increasing airport capacity could affect fares more significantly than adjustments to charge levels alone. The study invites policymakers to weigh these factors in reform debates.
Rationale given in the briefing indicates a need to revisit conventional wisdom on what drives fare levels, emphasizing market structure and capacity constraints over charges. The release positions itself as a contribution to ongoing regulatory fitness checks.