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.