Balancing Conflicting
Interests
Government
is frequently about balancing the needs of different interest
groups. How far should economic benefits be sacrificed to protect
the environment, and vice versa? Airport location is a prime
example - it is a modern day presumption that people should
have access to cheap flights, but at the same time people feel
very strongly about the environmental impact of airport expansion
in their locality. Airports should always be somewhere else.but
not too far away!
Without
adequate airport capacity, another presumption of modern economic
life is put at risk - competition. At the very least, shortage
of capacity will distort the competitive relationships or even
put it at risk altogether. Governments consequently will come
under pressure to regulate the normal balance of supply and
demand, possibly by price controls, imposition of congestion
charges or making arbitrary decisions on the allocation of landing
and take off rights.
Recent
trends have seen a move towards privatisation of both airlines
and airports. Within Europe, this has been encouraged by European
Union policies. Elsewhere in the world, the demands on the government
purse has put into question the viability of supporting national
airlines, leading to a more "hands off approach" if not outright
privatisation.
The MSP Solutions
Approach
MSP Solutions
has the expertise to examine the following topics and to develop
recommendations:
- Market forecasts - total growth and segmentation
- Identification of catchment areas
- Surface access
- Infrastructure requirements
- Investment requirements
- Airport pricing regimes
- Airline economic factors
- Regulatory issues
The Benefit to Our
Clients
MSP Solutions
is able to prepare in depth reports for government policy makers
and for consultation exercises. MSP Solutions is also able to
provide on going advice on an ad hoc basis.
Our people
have extensive knowledge of aviation strategy, both from the
airline and airport perspective as well as practical experience
of surface access and airport rail. We have also acted as aviation
advisors for various governments and authorities.