More than 471,000 airports in Europe remain loss-making. This was announced at the Connecting Europe Fund (CEF) conference held last week in Tallinn, ACI EUROPE reports.
CEF is the EU fund for investments in pan-European transport infrastructure, as well as in the field of energy and digital projects aimed at creating closer connections between the Union's member countries.
Experts emphasized that demand for CEF funds is currently 2.5 times greater than available resources.
Olivier Jankovec, Director General of ACI EUROPE, commented on this issue as follows: “While ACI EUROPE joins the call for an increase in the EU budget for transport, we also believe that there should be a fairer distribution of funds between the different modes.”
As noted at the conference, the airport industry is known for its capital intensity and high fixed costs (including infrastructure maintenance and security). However, a well-managed airport allows any region to connect to the rest of the world, playing a vital role in attracting foreign direct investment.
Meanwhile, the city's proximity to the airport remains one of the main criteria considered by airlines when deciding on their location and development strategies.
According to a new study, Download the Oxera Study, Over the past seven years, competition between European airports has intensified significantly. This has been driven by the combined impact of disruptive market changes, including the steady increase in the number of low-cost carriers and Gulf airlines, as well as the convergence of carrier business models.
"Airports no longer compete locally with other airports serving the same area. Now they compete on a pan-European platform to attract new air connections and maintain the ones they have. This is because many airlines regularly hold so-called 'beauty contests' among airports to secure the best deals and other forms of support," he noted. Olivier Jankovec.
In his research Oxera Study also indicates the development of increased competitive pressure at medium and large-sized airports.
Experts consider this trend to be a completely normal development process, explaining that increased competition between airports gives airlines more leverage in negotiations.
Andrew Miney, partner and head of transport at Oxera, commented on the matter:"Our research confirms that the competitive landscape of the European aviation market is evolving rapidly, and competition between airports is growing rapidly. Many of the market trends driving this competition are well established and are likely to continue to exert pressure on airports of all sizes across Europe."
Source: trn-news.ru