D'Alfonso, Tiziana / Concentration and market power of carriers in airports

Title:	Concentration and market power of carriers in airports
Name PhD candidate:	Tiziana D'Alfonso
Organization:	University of Bergamo
Supervisor:	Prof. Alberto Nastasi
Email address:	This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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Abstract of thesis:	Deregulation in air transport has not given the expected results in reaching a competitive arrangement:recent dynamics in the industry have been outlining an increase in the degree of concentration in the supply of air services, and a market polarization all around fewcarries with a relevant market share, challenged by smaller competitors . Recent analysis confirms this trend by concentration and saturation indexes, calculated for the 20 biggest airport in Europe (ICSSAI 2008). In this framework, concentration in air transport industry and possible forms of cooperation and vertical integration between carriers and airports are analyzed with reference to the effects on pricing policy and investment incentives to airport management in congestible structures. Thus, this research activity will define a model of analysis which will take into account the two following items. a) - Analysis of the nature of carriers' strategic interaction - The project aims at identifying the models of interaction that best represent airlines' strategic behaviour with respect to the degree of concentration and market structure in the airport - carrier system. On this basis, the models developed so far are critically analyzed and eventually modified with reference to nationwide and world-wide data concerning airlines' direct and indirect competition within airports. The analysis will take into account the presence of alliances and code-sharing agreements between carries, so as to avoid considering competition among airlines which, in fact, act jointly in the supply of particular air routes. b) Effects of carriers concentration over investment incentives in airport capacity - Airlines’ strategic interaction and the forms of cooperation between airport and the incumbent carrier(common ownership or other forms of vertical integration) are examined in order to evaluate the possibility of carriers’ involvement in defining an efficient investment program.
(Expected) date of completion:	December 2012
PhD Pitch	PhD Pitch Tiziana D'Alfonso