contrails67
Topic Author
Posts: 54
Joined: Fri Nov 20, 2009 11:11 pm

Why Give Away Prime Airport Cities?

Sat May 07, 2011 10:44 pm

Posted by contrails67 (contrails67@hotmail.com) 2011-05-07 14:28:27

I can see that many middle east carriers(EK,EY,QR, KU), as well as Asian Pacific carriers(SQ) depend on other countries to open up their airports so that they themselves can grow. My question is what do these countries offer or what do the recipient countries receive?

For example, EK has DXB, Qatar Airways has DOH and EY has AUH while SQ has only SIN. Not many people are flying directly to these countries, but rather use them for transit. Besides, these countries have only one or two cities which may even be alluring to visit.
So, what does a country like the U.S or Canada receive in compensation for opening up their prime airports such as JFK, LAX, ORD, ATL, etc..? Sure, customers in the US or Canada would be happy with more competition which result in lower fares, but is there any other type of compensation that is received by the government such as financial or otherwise?

I

[Edited 2011-05-07 15:45:02]
 
flymia
Posts: 6867
Joined: Thu Jun 14, 2001 6:33 am

RE: Why Give Away Prime Airport Cities?

Sat May 07, 2011 11:10 pm

Quoting contrails67 (Thread starter):
So, what does a country like the U.S or Canada receive in compensation for opening up their prime airports such as JFK, LAX, ORD, ATL, etc..? Sure, customers in the US or Canada would be happy with more competition which result in lower fares, but is there any other type of compensation that is received by the government such as financial or otherwise?

What do you mean oppening them up? Are you talking open skies agreements because those are between countries not certain airports IIRC. Now of course with some places a certain amount of slots are issued and this is a decision between both countries governments. The amount of frequencies given its a decision between both countries governments. Then the frequencies lets say the Unite States has to fly to Brazil are awarded to US airlines. Then Brazil will have their own amount of frequencies given to Brazilian airlines. I do not think the countries get any compensation. Of course the airports benefit with more service and passengers with more competition. Government compensation would be illegal at least in the US. But their are open skies agreements like the US EU so any EU or US airline can go ahead and fly all the flights they want from and to the US and EU. Airlines pay government fees and taxes so I guess the more planes flying the more money they get in from that. But at the same time the more planes the more resources used.
"It was just four of us on the flight deck, trying to do our job" (Captain Al Haynes)

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