CATALAN AIRPORTS NETWORKFrom a low cost paradise to an efficient model

INTERNATION MANAGEMENT MODEL

CURRENT SPANISH MANAGEMENT MODEL

Strictly public and centralized management of airports in Spain and its main economic implications. State ownership.

AENA MODEL

Control of air space + ownership of the infrastructures.

48 airports (just 9 had profits in 2009).

Lack of competition between airports.

ABOUT AENA CONSEQUENCES

Redistribution system.

Public policy doesn’t maximize welfare. Trade-off between efficiency and equality.

Globalized economy -> needing worldwide mobility. The ability of airports and airlines to channel this flow is a central factor in determining the amount of non-stop long distance flights offered from a particular airport (AENA model does not facilitate this).

Centralization of long-haul traffic in Madrid airport.

THE OTHER NATIONAL AIRPORTS

Girona: Ryanair’s main airport in southern Europe.

Reus: an important basis for British carriers .

Lleida – Alguaire: a new airport owned by the Catalonian Government.

BALANCE

Growth 2000-2007

Ranking traffic AENA 2000

Ranking traffic AENA 2007

Barcelona 66% 2 2

Girona 644% 23 10

Reus 79.45% 20 23

Catalonia 84,31%

WHY DO WE NEED A DECENTRALIZED MODEL?

To implement flexible strategies in order to differentiate each airport.

To better manage the profits of each infrastructure.

ABOUT BARCELONA AIRPORT

Has surpassed the European average in terms of growth from 2000. 66%. (Only London Stansted has had a higher growth rate).

Domestic48%European

50%

International2%

BCN traffic distribution

BARCELONA: AN INTERCONTINETAL HUB

The new management model should promote (with routes and prices) the airlines that want to connect Catalonia to the rest of the world.

Airport authorities should have strategic commercial policies that discourage low cost companies (currently, low cost traffic represents more than 40%).

BARCELONA CURRENT INTERNATIONAL ROUTES

WHY IS LOW COST NOT THE SOLUTION FOR BCN?

Globalized economy -> needing worldwide mobility.

Operational conditions: Does not allow through check-in (only point-to-point

flights). Does not allow connections. Inadequate schedules. Opportunity cost.

Low cost carriers have other airports to establish their bases.

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THANKS!From a low cost paradise to an efficient model