BEYOND GEOGRAPHY: THE ENDOGENEITY OF AIRPORT CATCHMENT AREAS

by Nada Gaijc

In competition assessment, airport catchment areas are often proxied by distance or travel-time thresholds. The Aviation Guidelines on State aid to airports and airlines indicae such a benchmark while recognising that catchment areas may vary depending on airport-specific characteristics. Some factors shaping catchment areas, such as local geography and existing surface transport infrastructure, can be considered fixed, at least in the short run. Others, however, are determined by the interaction between airports, airlines and passengers. As airports operate as platforms in two-sided markets, these actors’ choices influence one another, making catchment areas endogenous and their assessment more complex.

Read the full insight here to explore this mechanism and its implications for State aid assessment.

For further analysis of airport catchment areas, as well as airport profitability, competition, connectivity and the green transition, read the Evaluation Support Study for the Revision of the Guidelines on State Aid to Airports and Airlines, prepared by Lear, DIW and EY for the European Commission.