Aircraft-related charges in European airports : determinants and differentiation

Abstract

Purpose: This study is focused on determination whether the size of an airport influences the airport's policy regarding the amount of aircraft-related airport charges. Additional test were conducted to determine whether airport charges are dependent on airport profile. Design/Methodology/Approach: The sample includes airports located in the European Union that in 2019 served more than 5 million passengers (threshold in accordance with the master EU-level Directive 2009/12/EC, 2009). The data records were also grouped into 3 sections representing large hubs, small- and medium-sized hubs and regional/LCC/charter airports. The airport charges data used for the analysis is supplied by own studies and calculation based on airports individual price lists for 2021. The research hypotheses were verified with the use of the classic regression model and Pearson Correlation Coefficient. Findings: The findings may indicate that larger airports leverage their market position and charge more for aircraft movements. However airports may also apply different policies, depending on whether they belong to small and medium-sized hubs or large ones. Practical Implications: Better understanding of airport pricing policies and their motivations may help: - Regulators – to better adjust the policy to the realities and needs of the market. - Airports – to ensure better and more effective approach airport charges. - Airlines – to better understand airport policy on airport charges and to enforce their positions on these charges more efficiently, including during their consultations. Originality/value: The existing research focuses on aeronautical revenue and airport charges in bulk. The proposed approach is more targeted and offers a more in-depth analysis of the nature of airport charges and their determinants at disaggregated level.