Integration and concentration: the evolution af air transport in the EU

The last years have witnessed a deep modification of air transport stakeholder’s behaviours. Airlines competition has been exacerbated by the downturns in the economic conditions while airport competition has been emerging as a result of the less governmental intervention in financing airport investments. The first aspect has resulted in a mix-model adopted by EU airlines in the intra EU market, which implies that network airlines have adopted few of the strategies that have guaranteed the establishment of the low fares carriers while low cost carriers have adopted simple hubbing models and have been continuously increasing the number of major airport served. The volatility of the air transport liberalized and deregulated market has been analysed in the scientific literature and these aspects can be perceived as further evidences of the increased volatility. In order to limit the negative effects of volatility in the EU air transport market, air transport players have been sought manners to enhance stability. Airlines mergers or acquisitions, buyout of airport operator’s shares by airlines, airport-airline partnership for ad-hoc infrastructure development or buyout of airport’s shares by other airport operators are examples of this will for a greater stability of the system. This paper involves all these aspects, This paper analyses all these aspects highlighting the pursuing of greater stability by the fragile EU air transport system.