By Glenn Ashley

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Alternatively, how do Stansted and Manchester airports compete more effectively with other airports? This chapter attempts to answer these two questions in the EU context. This will be done first by discussing what an airport does, how it charges for its services and which of its functions the regulator is most concerned with. This will require the consideration of the airport as an intermodal hub. Next, airport competition will be considered by examining the perception of airport operators and how this might fit in with reality.

The ruling was based both on the fact that Amsterdam competed with other airports, given its location and type and volume of traffic handled, and the unfair advantage that it had in competing for the acquisition of other airports. Airports can also confer state aids on transport providers if they themselves are owned by the state. Thus a state-owned airport could offer one airline an unfair advantage if it offered special discounts or subsidies to an airline that was not open to other airlines that offered similar services.

4. Have entries forced incumbent airports to cut costs and lower prices? Have they become more efficient than airports in a market without entries? In this chapter we focus on the first three questions. For the purpose of our analysis, we have selected a period from 1995 to 2005. This period was partially determined by lack of data, but it covers a long phase of boom and recession, which should contribute to entries and exits. In the following section we outline the major changes in governance structure of European airports.

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