Airports as multimodal interchange nodes : report of the one hundred and twenty sixth Round Table on Transport Economics held in Paris on the 20th-21st March 2003

175 Pages·2005·5.75 MB·English

by  OECD

fullTab126GB 11/02/05 11:44 Page 1
12 6
EUROPEAN CONFERENCE OF MINISTERS OF TRANSPORT
AIRPORTS AS MULTIMODAL
INTERCHANGE NODES
With the dramatic increase in air transport
due to the deregulation of the airline
industry, transport policy is confronted with AIRPORTS
new challenges to provide land transport
E
connections to airports. The Round Table A
IR R
discussed how the requirements of ensuring PO T AS MULTIMODAL
efficient land transport connectivity depend R
T N
S
on the market structure of the airline A E
S
industry and its impact on the airport M C INTERCHANGE
U
network. To reduce the increasing L
T
dominance of private car use in airport IM H
O
connectivity, policy measures are required: D
A C
L NODES
To charge for the direct and indirect costs ■ IN R
of the different modes, TE A
R
C E
To de/regulate the public transport sector, and ■ H
A
N S
To provide incentives for improving airport ■ G
E E
design and organisation to increase N R
O
the attractiveness of public transport. D
E R O U N D
S C
Transport policy itself could be more effective
through improved co-ordination between I
126 M
airport and land transport planning. T A B L E
O
Moreover, through co-ordination mechanisms, R
O
regional location policies should avoid N
U
creating airport excess capacity. N O
D

T C
A
B E 12 6
L
E
-:HSTCSC=VUXX^Z:
(75 2005 03 1 P1) ISBN 92-821-0339-0 2005
cover.fm Page 1 Wednesday, February 9, 2005 3:35 PM
ECONOMIC RESEARCH CENTRE
REPORT OF THE
ONE HUNDRED AND TWENTY SIXTH ROUND TABLE
ON TRANSPORT ECONOMICS
held in Paris on 20th-21st March 2003
on the following topic:
AIRPORTS AS MULTIMODAL
INTERCHANGE NODES
EUROPEAN CONFERENCE OF MINISTERS OF TRANSPORT
cover.fm Page 2 Wednesday, February 9, 2005 3:41 PM
EUROPEAN CONFERENCE OF MINISTERS OF TRANSPORT (ECMT)
The European Conference of Ministers of Transport (ECMT) is an inter-governmental organisation
established by a Protocol signed in Brussels on 17 October 1953. It comprises the Ministers of
Transport of 43 full Member countries: Albania, Armenia, Austria, Azerbaijan, Belarus, Belgium,
Bosnia-Herzegovina, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, Finland, France,
FRY Macedonia, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania,
Luxembourg, Malta, Moldova, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia and
Montenegro, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine and the United Kingdom.
There are seven Associate member countries (Australia, Canada, Japan, Korea, Mexico, New Zealand and the
United States) and one Observer country (Morocco).
The ECMT is a forum in which Ministers responsible for transport, and more specifically the inland
transport sector, can co-operate on policy. Within this forum, Ministers can openly discuss current
problems and agree upon joint approaches aimed at improving the utilization and at ensuring the
rational development of European transport systems of international importance.
At present, ECMT has a dual role. On one hand it helps to create an integrated transport system
throughout the enlarged Europe that is economically efficient and meets environmental and safety
standards. In order to achieve this, it is important for ECMT to help build a bridge between the European
Union and the rest of the European continent at a political level.
On the other hand, ECMT's mission is also to develop reflections on long-term trends in the
transport sector and to study the implications for the sector of increased globalisation. The activities in
this regard have recently been reinforced by the setting up of a New Joint OECD/ECMT Transport
Research Centre.
*
* *
Publié en français sous le titre:
LES AÉROPORTS: DES PLAQUES TOURNANTES MULTIMODALES
Further information about the ECMT is available on Internet at the following address:
www.oecd.org/cem
© ECMT 2005 – ECMT Publications are distributed by: OECD Publications Service,
2, rue André Pascal, 75775 PARIS CEDEX 16, France
TABLE OF CONTENTS

INTRODUCTORY REPORTS

The European market for airline transportation and multimodalism - by
K. BUTTON (United States).........................................................................................................5

1. Introduction........................................................................................................................9
2. The basic economics of hub-and-spoke networks...........................................................11
3. Trends in European air transportation.............................................................................17
4. Segmentation of European air transportation..................................................................21
5. Trends in multimodalism policy......................................................................................25
6. Conclusions......................................................................................................................35

The role of airports in the transport chain - by S. BARRETT (Irlande)...............................41

Introduction: overlooking airports in the transport chain.....................................................45
1. The airline/airport interface.............................................................................................45
2. Passengers, airlines and airports......................................................................................51
3. The passenger/airport/airline interface............................................................................55
4. Freight, airlines and airports............................................................................................62

Airport systems and connectivity - by R. PICARDI (Italy)....................................................67

1. Overview..........................................................................................................................72
2. Comparing two approaches..............................................................................................75
3. The modern airport system..............................................................................................85
4. Multimodality and intermodality.....................................................................................88
5. The “virtual hub” concept................................................................................................93
6. Network nodes.................................................................................................................94
7. Connecting infrastructure..............................................................................................102
8. Full network...................................................................................................................109
9. Conclusion.....................................................................................................................114

Round Table 126 – Airports as multimodal interchange nodes – ISBN 92-821-0339-0 - © ECMT, 2005 3
Airports as multimodal interchanges nodes – the example of London Heathrow -
by A. DUFF (United Kingdom)................................................................................................119

1. Introduction....................................................................................................................123
2. The socioeconomic importance of aviation...................................................................125
3. Why is surface access important?..................................................................................126
4. Heathrow’s regional context..........................................................................................127
5. Airport transport strategy...............................................................................................129
6. The role of the transport forum......................................................................................130
7. The starting point...........................................................................................................132
8. Rail access......................................................................................................................135
9. Bus access......................................................................................................................139
10. Coach networks..............................................................................................................141
11. Area wide mobility management...................................................................................142
12. Regional impact.............................................................................................................143
13. Conclusion.....................................................................................................................146

SUMMARY OF DISCUSSIONS

(Round Table debate on reports).................................................................................................151

LIST OF PARTICIPANTS..............................................................................................................167

4 Round Table 126 – Airports as multimodal interchange nodes – ISBN 92-821-0339-0 - © ECMT, 2005
THE EUROPEAN MARKET FOR AIRLINE TRANSPORTATION AND MULTIMODALISM

Kenneth BUTTON
School of Public Policy
George Mason University
Fairfax
United States

Round Table 126: Airports as Multimodal Interchange Nodes – ISBN 92-821-0339-0 - © ECMT, 2005 5

THE EUROPEAN MARKET FOR AIRLINE TRANSPORTATION AND MULTIMODALISM
SUMMARY
1. INTRODUCTION...........................................................................................................................9

2. THE BASIC ECONOMICS OF HUB-AND-SPOKE NETWORKS............................................11

2.1. Connectivity versus interconnectivity....................................................................................11
2.2. Optimal levels of hubbing......................................................................................................12
2.3. The user externalities approach to optimal hubbing..............................................................13
2.4. Environmental considerations................................................................................................15
2.5. Multimodal considerations.....................................................................................................16

3. TRENDS IN EUROPEAN AIR TRANSPORTATION................................................................17

3.1. Market trends.........................................................................................................................17
3.2. Finance...................................................................................................................................20
3.3. Airports..................................................................................................................................20

4. SEGMENTATION OF EUROPEAN AIR TRANSPORTATION...............................................21

4.1. Full services carriers..............................................................................................................22
4.2. Non-scheduled services..........................................................................................................22
4.3. No-frills services....................................................................................................................23
4.4. Regional airlines.....................................................................................................................23
4.5. Premium-only services...........................................................................................................23
4.6. Implications of segmentation for airports..............................................................................24

5. TRENDS IN MULTIMODALISM POLICY................................................................................25

5.1. Airports access links..............................................................................................................26
5.2. Airports as interurban modal interchange nodes....................................................................28
5.3. Air trucking............................................................................................................................29
5.4. Telecommunications and airport use......................................................................................32
5.5. The “mainport” concept.........................................................................................................33
5.6. Environmental factors............................................................................................................33
5.7. Safety......................................................................................................................................33
5.8. Security..................................................................................................................................34

Round Table 126: Airports as Multimodal Interchange Nodes – ISBN 92-821-0339-0 - © ECMT, 2005 7
6. CONCLUSIONS...........................................................................................................................35

NOTES..................................................................................................................................................36

REFERENCES......................................................................................................................................38

Fairfax, January 2003
8 Round Table 126: Airports as Multimodal Interchange Nodes – ISBN 92-821-0339-0 - © ECMT, 2005
1. INTRODUCTION
Air transportation has been growing rapidly over the past two decades and -- despite a significant
slowing in demand during the period following the attacks in the US on the World Trade Center in
New York and the Pentagon in Arlington -- is projected to grow in the foreseeable future. In
economic terms, these predictions reflect the superior good nature of air travel as incomes rise.
Additionally, increased amounts of leisure time, the continual growth in tourist travel and visits to
family and friends, as well as the demands of modern industry for business travel, are seen as acting to
continually foster demand for air passenger services. On the cargo side, just-in-time production, both
in terms of limiting inventories of inputs and spare components and the easing of institutional
constraints on trade, is leading to continually rising demands for air freight movements which are
forecast to continue for at least two decades1.
These forecasts are also founded on other, perhaps less solid assumptions about continuing trends
in other causal factors. Institutionally, the liberalization of air transportation markets since the late
1970s has allowed the supplying airlines to offer more capacity and more innovative service networks
at lower costs to customers (BAE Systems, 2000; Schipper et al., 2002). Again, forecasters see this
pattern of regulatory reform continuing, most notably within the context of the emergence of more
liberal bilateral and multilateral international air service agreements, with positive effects on air
transportation use. While this may be a valid assumption in the long term, institutional changes and
their timing are notoriously difficult to predict.
Combined with this, technology has continually been moving forward and leading to lower costs
of air service provision2. Some of this has been of an incremental kind, e.g. in terms of more
fuel-efficient engines and longer range versions of existing aircraft series, while others represent more
significant structural changes, e.g. the advent of regional jet airliners and the potential for much larger
jet aircraft, such as the Airbus 380. Major changes akin to the trend breaks of the past, notably the
advent of the jet-engine commercial airliner and then wide-bodied aircraft, however, were probably
also important in allowing the continuation of incremental changes. Early jet engines were much less
efficient than their modern counterparts but overcame significant limitations of propeller-based
technologies. However, such sea changes, as opposed to movements along a technology trend line,
are rare and may well not occur in the near future.
There have also been technical changes in the infrastructure of air transportation, as new air
traffic control and navigation systems have emerged and as these are gradually being integrated into
the air transportation system, e.g. the European Single Skies initiative. Progress here, however, is and
is likely to continue to be patchy. It involves not only difficult technical issues of integrating new
systems into an established structure but there is also a need for international co-ordination in so
doing.
Perhaps of more importance, many of the forecasts implicitly assume that airport capacity will be
available at more or less the same level as it has been in the recent past. Airports provide the vital
terrestrial nodes to the air service links. As such, they effectively can act as a constraint on the growth
of air traffic networks. But the issue goes beyond the narrow one of the ability to handle aircraft.
Round Table 126: Airports as Multimodal Interchange Nodes – ISBN 92-821-0339-0 - © ECMT, 2005 9