Consolidation in Airline and Airport Industry Facts: New Research Reveals low-cost airlines and Expansion in Asia will restore power balance

Market Research HUB

Albany, USA, 2018-Jun-29 — /EPR Network/ — Market Research Hub (MRH) has recently broadcasted a new study to its broad research portfolio, which is titled as “Airline consolidation reducing airports negotiating power” provides an in-depth analysis of the airports negotiating power with the forecast of market size and growth. The analysis includes addressable market, market by volume, and market share by business type and by segment (external and in-house).The research study examines the airports negotiating power on the basis of a number of criteria, such as the product type, application, and its geographical presence.

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Airline consolidation reducing airports negotiating power: Accepting low-cost airlines and expanding into Asia will restore power balance dynamics

Summary

Consolidation in the airline industry is reducing their reliance on airports. Airports will have to diversify their operations abroad and welcome low-cost airlines to negate this power imbalance.

In the year 2000 for example, the top four players in the US airline industry had a combined market share of 61%. By 2015 the top four players namely American Airlines, Delta Air Lines, Southwest Airlines and United Continental had a combined share of 84%.

Airports Council International (ACI) Europe head Olivier Jankovec speaking on this issue stated that “Consolidation means less airlines in the market to chase, to serve your airport and open destinations. It also gives airlines more purchasing power, more power to dictate the conditions under which they serve an airport. An airport cannot move, [but] an airline can move to another location.

The balance of power between airports and airlines has increasingly been tilting towards airlines in recent years, as their consolidated nature has allowed them to dictate terms more so than airports. However airports can negate this tilt by themselves expanding their operations to other parts of the world, thereby reducing their reliance on a select few airlines.

Scope

– Examines the state of the airline and airport industries
– Explains why the airline industry is witnessing consolidation
– Analyzis the impact airline consolidation is having on the airport industry
– Explores ways in which airports can reduce their reliance on a few airlines

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Table of Content:

Table of Contents
Overview 2
Catalyst 2
Summary 2
Airlines under increasing financial pressure due to competition, regulatory costs and oil price fluctuations 6
Increased competition and rising regulatory costs affecting European and North American airline companies 6
Oil price fluctuations continue to hamper industry 7
Consolidation in the airline industry increasing airport reliance on fewer buyers 9
Strong decline in the number of airlines in Europe and North America 9
Bankruptcies also reducing the number of players 10
Consolidation in the airlines industry is reducing negotiating power of airports 11
Decline in retail revenue also affecting airports negatively 12
Expansion into less mature regions and consolidation between airports required 14
Asia is witnessing an airport boom presenting growth opportunities for European/North American airport groups 14
Major airports will have to continue welcoming low budget airlines 15
Consolidation in the airline industry negatively impacting airports 17
Airports would do well to expand operations to less mature regions and welcome low-cost airlines 17
Appendix 18
Sources 18
Further Reading 19
Ask the analyst 20
About MarketLine 20
Disclaimer 20

.. @@ Continued

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