The 2nd assignment is about airport competition. Two students can team up. Please use around 1,000 words to describe the competitive situation of Hong Kong International Airport. Develop your analysis following the discussion of airport competition in Europe using the different literature sources which I have provided to you in this class. It is important for the grading that your homework assignment reflects that you have had a closer look at those literature sources and that you understand them. Please feel free to add other literature sources to the discussion.

Tips:

1. Two important determinants of airport competition: 1) number of players, 2) how "similar/ homogenous" are the services

2. Distinguish the markets: 1) Transfer passengers, 2) Origin-destination passengers, 3) Airlines (are they footloose?)

Discuss these issues considering the GBA airport situation.

CASE STUDY 1: BUDAPEST CASE STUDY 2: BARCELONA In January 2012, the month immediately prior to its exit from the market, Malev accounted for 46% of flights and 42% of seats from Budapest airport although only 23% of passengers. Following Malev's failure on 3 February 2012, it is unsurprising that both flights and seats available decreased by almost exactly these amounts in February 2012. However, it is perhaps telling that passenger numbers only fell by 15%. In Barcelona, a similar pattern was observed following the failure of Spanair in January 2012. In December 2011, Spanair's last full month of operations, the airline was the fourth largest operator at El Prat airport accounting for 11% of flights and 12% of seats. The market at Barcelona airport was therefore already more contested than in Budapest. It is well documented that a number of airlines, in particular Ryanair and Wizzair, were quick to fill the available routes, including many on which Malev had been the sole operator, such that by January 2013, passenger numbers were in fact nearly 20% higher than they had been a year earlier. However, as in Budapest, other airlines, in particular Vueling, responded to Spanair's exit by increasing capacity. Accordingly, overall passenger throughput at El Prat increased 2.2% in 2012 compared with 2011 despite the loss of a major carrier so early in the year. Transportation Research Part E 101 (2017) 84-98 Contents lists available at ScienceDirect TRANSPORTATION RESEARCH Transportation Research Part E 3 ELSEVIER journal homepage: www.elsevier.com/locate/tre Cross Mark Multiple airport regions based on inter-airport temporal distances Xiaoqian Sun a,b, Sebastian Wandelt a,b,*, Mark Hansen, Ang Li 12 SUM a School of Electronic and Information Engineering, Beihang University, 100191 Beijing, China "Beijing Key Laboratory for Network-based Cooperative ATM, 100191 Beijing, China Department of Civil and Environmental Engineering, UC Berkeley, Berkeley, CA 94720, United States MARS size distribution: Temporal distance (1.5 h). The number of MARs by number of airports and continent of the MAR is shown. Continent/ Nr. of airports in MAR 1 2 3 4 5 6 7 8 9 10 11 Africa 297 13 1 0 0 0 0 0 0 0 0 Asia 677 49 5 3 Europe 319 59 20 0 0 North America 630 99 20 8 2 1 0 1 0 0 0 Oceania 200 23 3 0 0 0 0 0 0 0 0 South America 211 22 2 1 0 0 0 0 0 0 0 SUM 2334 265 51 18 3 1 0 2 0 0 1 0 0 0 0 1 0 0 0 0 0 1 6 1 0 0 0 0 0 0 0 311 734 407 761 226 236 2675 Airport) is almost twice as high as for LAX (Los Angeles International Airport). Fig. 8(b) presents the frequency distribution of spatial distances for the top six largest MARs. The red median lines show that most hub airports are 50-80 km away from the non-hub airports