Airport Economics

"One of the key strengths of the book is in discussing how recognised economic theory relates to airports but at the same time balancing debates about major issues that are particularly relevant to the airport industry today. These include long-term traffic forecasting accuracy, slot allocation, incentives for investment, interactions between aeronautical and non-aeronautical areas and the choice of till, performance measurement challenges, decarbonisation strategies, economic impact measurement and the effect of COVID-19. A novel approach is the identification of a major controversy in each chapter which is examined through discussions of the relevant issues. The book also has case studies and numerous examples which illustrate and support many of the arguments that are developed in the book by linking theory and practice. The book will be of interest to practitioners working in the airport industry but also to other air transport sectors, especially airlines. Its insights will be invaluable for informing regulation and government policy. Moreover, it will be ideal for academics, researchers and students by providing in-depth coverage of key airport economic issues in one accessible text. Anne Graham, Westminster University Airport Economics is a must read for the beginner and for the expert. The former will find a scholarly, yet highly readable presentation not only of ""traditional"" topics, such as airport demand, costs, and pricing, but also of more ""contemporary"" ones, such as airport ownership, efficiency, regulation, and environmental and social impacts. And the expert will appreciate the comprehensive and thoughtful critical reviews of the numerous related issues and solution approaches provided by Professors Forsyth, Guiomard and Niemeier. Features that this reader particularly enjoyed include: a plethora of insightful real-world examples; the book’s decidedly international perspective; the brief case studies that are interspersed throughout the text; and, best of all, the ""controversies"" that are introduced at the end of each chapter – e.g., ""are private, lightly regulated airports ripping off airlines and passengers?"" – that motivate the reader to re-consider and synthesize the points that the chapter discussed. Amedeo Odoni, T. Wilson Chair Professor Emeritus, MIT ‘Air transport is distinguished, not just by providing rapid connections between cities, but also by the sheer scale of distortions in many of its markets. The pricing of airport services developed largely on cost recovery and cross-subsidy, with landing fees often determined by how much shopping takes place at the airport, exacerbating demand for scarce landing slots. Environmental externalities are not remotely paid for. Capacity expansion is no better than pricing. It is 55 years since the Roskill Commission issued their thoughtful and pioneering report on London’s airport capacity needs. They were ignored. Poor government decision making on airports has so often resulted from adversarial politics, the tyranny of the minority, concern for newspaper headlines and, most importantly, bogus quantification that provides endless numbers but no insight. This much needed book on the economics of airports is full of insights. It should be essential reading for all those in government, regulators and the industry concerned to make rational decisions about the future development of an industry that plays such an important role in connecting cities at home and around the world.’ Brian Pearce, Former Chief Economist IATA"