AVIATION-RELATED AIRPORT MARKETING IN AN OVERLAPPING METROPOLITAN CATCHMENT AREA: THE CASE OF MILAN'S THREE AIRPORTS

Milan is the third richest catchment area in Europe, just behind London and Paris, in terms of individual gross domestic product. Nevertheless, airport operations in Milan have not had the same degree of development that one would expect in such a wealthy area. The main reason is due to the existenc...

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Bibliographic Details
Published in:Journal of air transportation 2005-05, Vol.10 (2), p.96
Main Author: Jarach, David
Format: Article
Language:English
Subjects:
Airlines
Airports
Aviation
GDP
Gross Domestic Product
Market positioning
Marketing
Metropolitan areas
Regulation
Startups
Studies
Traffic congestion
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Summary:Milan is the third richest catchment area in Europe, just behind London and Paris, in terms of individual gross domestic product. Nevertheless, airport operations in Milan have not had the same degree of development that one would expect in such a wealthy area. The main reason is due to the existence of three airports located within in the same metropolitan area, which creates a negative offer fragmentation and doesn't allow for airlines, and especially the hub carrier, to achieve significant returns on investment from improved outputs. Moreover, this situation, in the absence of a market-driven regulatory regime of flight activities able to split operations between the three sites in correlation with their technical, geographical and vocational characteristics, naturally tends to create overlapping and cross-cannibalization. Recent proposals to solve these problems have proved to be short-minded remedies. This paper aims to analyze the current situation of Milan's metropolitan area for airport operations and propose some innovative regulatory solutions that are needed to make Milan airports more marketable and, thus, create a platform for their distinctive strategic marketing positioning within the European airport scenario. [PUBLICATION ABSTRACT]
ISSN:1544-6980