| Property | Value |
| Name | Veldhuis, J. and Burghouwt, G. (2007) The impact of EU-US Open Skies: the example of the Northwest |
| Description | Veldhuis, J. and Berghouwt, G. (2007) The impact of EU-US Open Skies: the example of the Northwest route development at Heathrow, Airneth research memorandum 07-2007, 21 December 2007 NORTHWEST SERVICES OUT OF HEATHROW LIKELY TO BE SUCCESFUL Taking benefit of the EU-US Open Sky Agreement and the slot holdings of SkyTeam partner KLM at London Heathrow, Northwest Airlines has announced to start flights to Minneapolis and Detroit out of Heathrow. This Airneth Research Memorandum estimates the market share of Northwest airlines on routes to North America. It concludes that, with 11% of direct flights from Heathrow, SkyTeam is able to take 20% of the market share, despite of the higher fares charged due to airport dominance. This market share is likely to exceed the capacity offered on the route. If Northwest keeps operating two daily flights it needs to turn off passengers, which it may naturally do by setting additional premiums on its fares. This would bring back the market share to levels according its capacity share (being 11% or little higher if the largest possible aircraft is used, in 2008 still the B747). However, the premium would generate significant additional revenues, making this new operation very likely a success. |
| Filesize | 137.73 kB |
| Filetype | pdf (Mime Type: application/pdf) |
| Created On: | 01/14/2008 11:54 |
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