New book by Dr Cathal Guiomard from DCU Business School explores economics of airports

Using airport resources and capacity efficiently is vital for the continued success of air transport, according to a new book co-authored by Dr Cathal Guiomard from DCU Business School, Prof Peter Forsyth from Monash University and Prof Hans-Martin Niemeier from Bremen University of Applied Sciences.

The book was launched by Willie Walsh, the former CEO of Aer Lingus, British Airways and IAG. Mr. Walsh, now Director General of the International Air Transport Association, also gave a guest lecture to Aviation Management students in DCU's Business School.

Mr. Walsh received an honorary doctorate from DCU in 2017.

Airport Economics traces how economic theory relates to aviation and the airport industry today, exploring the underlying economics of airports through a wide range of topics, from passenger and cargo demand and the pricing of infrastructure to economic regulation, efficient performance  and environmental impact. The book is aimed at industry leaders, policy makers and academics and students working in the business of aviation and transport management. 

The book focuses on how to get the best value out of an airport in terms of how well it serves the needs of passengers and international shippers, and looks at how potential regulatory changes could improve efficiency and service in the future. 

Speaking about the book, Dr Cathal Guiomard said:

“Airports have large benefits and large costs. They are an essential part of the wider air transport industry - connecting countries, people and businesses, supporting economic activity and expanding international trade. But the unwelcome effects of airports, in the form of noise, lower air quality and greenhouse gas emissions are too large because they are mostly not charged to the passengers and shippers whose journeys give rise to them. This book analyses these and other aspects of airports, considers the policies that would get the best from this infrastructure, and recommends reforms where current policies are deficient.”

Key recommendations

● Set charges to encourage demand at airports with adequate capacity

● Allocate capacity at busy airports to encourage efficient usage

● Provide increased airport capacity and quality, but not before they are needed

● Review the need for airport economic regulation, and when needed, implement

Regulations that promote efficiency

● Monitor the performance of airports regarding their efficiency and service quality

● Measure and eliminate the environmental costs of airport operations.

Airport Economics is published by Routledge.

About the authors

Peter Forsyth is Adjunct Professor of Economics at Monash University in Melbourne and a member of the Executive Board of the European Aviation Conference.

Cathal Guiomard is an Assistant Professor in aviation management at DCU Business School. He chairs the programme board of the BSc in Aviation Management.

Hans-Martin Niemeier is a Director of the Institute for Transport and Development at Bremen University of Applied Sciences. He is Chair of the German Aviation Research Society and member of the Advisory Board of the European Aviation Conference.