Analysis

Situation

The ‘situation’ characteristics relate to the spatial context of airports. This part will analyze the following characteristics:

Population

By combining population densities with the possible presence of low-cost carriers, one can analyze to what extend low-cost carriers fly on areas with a high population density. Population data is used from Eurostat (2006) and contains information from 2003, at the moment of research this was the year with the most complete data on different European countries. Countries lacking data and in which low-cost carrier could operate have been excluded from the related analyses.

Table 20 gives an overview of the average population density around airports located in nuts-1 regions per low-cost carrier type. The first column shows the average population density, the second column relates the population density with the number of seats which is operative in the region. A high value indicates there are more inhabitants per seat of the related carrier. For each low-cost carrier type the population densities have been visualized in figure 39. The presence of a low-cost carrier type has been visualized proportionally using the number of seats.

Figure 39, Population density, 2003, and low-cost carriers, 2005
LCC charter	LCC full-service
Source: Eurostat (2006), OAG (2005), Insert: Canary Islands, click image to enlarge

The LCC full-service type operates on areas with a high population density, followed by the LCC charter and LCC original type. The LCC regional type flies on areas with a relatively low population density. In case of the LCC charter type it appears the different departure airports are located in densely populated areas like England and Germany. The LCC original type is also present in densely populated areas, although the average number would be lower if Norway has been included in the analysis. The LCC regional type is present in lowly populated areas like for example areas in Spain, Scandinavia, Ireland and Scotland.

Figure 39, Population density, 2003, and low-cost carriers, 2005
LCC original	LCC regional
Source: Eurostat (2006), OAG (2005), Insert: Canary Islands, click image to enlarge

When looking at the population density per seat for each low-cost carrier individually information about extremes can be found here. Carrier extremes with a relatively high average population density per seat are mostly smaller airline companies. For example, Excel Airways has an average of 2,39, but is the smallest low-cost carrier measured in number of seats. Dauair is the next smallest carrier and has an average of 2,00.

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Gross domestic product (GDP)

To get an idea about the economy of regions on which low-cost carriers fly, the presence of a low-cost carrier, expressed in the number of seats, will be related to the gross domestic product (GDP) of the region. GDP data is from 2003, capacity data in number of seats is from September 2005.

Figure 40, Gross domestic product, 2003, and low-cost carriers, 2005
LCC charter	LCC full-service
Source: Eurostat (2006), OAG (2005), Insert: Canary Islands, click image to enlarge

The average GDP of a region on which a low-cost carrier flies, and the GDP per seat, is presented in table 21. This is visualized in figure 40 for each of the low-cost carrier types. Although the LCC regional type is most active in regions with a high GDP, it is less present when compared with the number of seats. The LCC regional type is mostly located in areas with a relatively low GDP. The LCC charter type, followed by the LCC original type, is located in regions with a relatively high GDP.

Figure 40, Gross domestic product, 2003, and low-cost carriers, 2005
LCC original	LCC regional
Source: Eurostat (2006), OAG (2005), Insert: Canary Islands, click image to enlarge

At the individual low-cost carrier level a couple of carriers have an high average GDP per seat (information can be found and downloaded here), for example Excel Airways (1053), Swedline (1044), and FlyBaboo (963). These are all smaller low-cost carriers which are more sensible for extreme values within their own network.

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Tourism

The relation between tourism and the presence of low-cost carriers can be analyzed by combining both in a GIS. Data about tourists comes from Eurostat and contains data from 2002. Tourism from within the nation has been left out.

Table 22 gives an overview of the average number of tourists per region for each low-cost carrier type. The second column presents the average number of tourists per seat. This last column gives an indication about the relation between low-cost carriers and tourism. A high value indicates there are more tourists per seat on which the low-cost carrier flies. Flights to regions without tourism data has been left out of the analysis. The LCC charter type flies on dense tourist areas, followed by the LCC original and LCC full-service type. The LCC regional type has the lowest number of tourists per seat.

Figure 41, Number of tourists, 2002, and low-cost carriers, 2005
LCC charter	LCC full-service
Source: Eurostat (2006), OAG (2005), Insert: Canary Islands, click image to enlarge

The number of tourists compared with the presence of the four low-cost carrier types is shown in figure 41. Next to the Mediterranean Sea areas, the south of Germany, Austria, and Switzerland all has a relatively high number of tourists. The LCC charter type is highly present in these regions which explain the high average share of tourists per seat of this LCC type. Although the LCC full-service type is not highly concentrated in certain regions, it is more localized in tourist areas compared to the LCC regional type.

Figure 41, Number of tourists, 2002, and low-cost carriers, 2005
LCC original	LCC regional
Source: Eurostat (2006), OAG (2005), Insert: Canary Islands, click image to enlarge

On the individual low-cost carrier level Easyjet and Ryanair are highly present in tourist areas (information can be found and downloaded here). The smaller low-cost carriers are responsible for some extreme values, they have a relatively high amount of tourists per seat.

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Geographical location

By analyzing data per country a better understanding of geographical location of low-cost carriers can be obtained. Data of low-cost carrier seats in 2003, 2004 and 2005 is aggregated per country and visualized.

Figure 42, Number of low-cost carriers per country, 2005-09
Absolute	Relative
Source: OAG (2005), click image to enlarge

The number of low-cost carriers per country, both absolute and relative, is visualized in figure 42 for the years 2003, 2004, and 2005. In 2005 almost all countries know an increase in the number of low-cost carriers. Ireland and Norway have a small increase in the number of low-cost carriers. East Europe, especially Czech Republic, Poland, and Hungary, know a relatively strong growth.

Figure 43, Number of low-cost carrier seats per country, 2005-09
Absolute	Relative
Source: OAG (2005), click image to enlarge

Figure 43 gives an overview of the number of low-cost carrier seats per country for the years 2003, 2004, and 2005. Great Britain, Germany, Spain, and Italy, have the highest number of low-cost carrier seats. East Europe has relatively the strongest growth in number of seats. When looking at the data for each country individually some exact numbers can be found (information can be found and downloaded here), this will strengthen the differences in the figures above. Great Britain has the highest number of low-cost carrier flights with a total of 7.867 flights, followed by Spain with 4.897 flights and Germany with 4.429 flights.

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Distance and competition

With help of a buffer analysis the number of surrounding airports within a certain distance of a selected airport can be analyzed. A high number of airports located within the buffer indicate a high competition potential. In this case the amount of airports which fall within 200 kilometers of a specific airport will be taken into account. Only airports are used on which a low-cost carrier operates.

Figure 44, Number of airports within 200km buffer, 2005-09
LCC charter	LCC full-service
Source: OAG (2005),Insert: Canary Islands, click image to enlarge

Figure 44 shows with proportional symbols for each low-cost carrier type the number of airports located within 200 kilometers at each airport. The result is an indication which airports can undergo competition from other airports within low-cost carrier networks. The LCC charter type has potential high competition in Great Britain, the Benelux, Germany, and around the Mediterranean Sea. The LCC full-service type has in comparison less competition, although they also undergo high competition in Great Britain and the Benelux.

Figure 44, Number of airports within 200km buffer, 2005-09
LCC original	LCC regional
Source: OAG (2005),Insert: Canary Islands, click image to enlarge

Areas with potential competition of the LCC charter type are the same areas with high competition when looking at the LCC original type, although the LCC original type also has competition around the northern part of Italy. The LCC regional type has on this subject more in common with the LCC full-service type, although the LCC regional type undergoes more competition in Great Britain.

Multiple factors could play a role when trying to explain the spatial dispersion of airports. Possibly the historical development of low-cost carriers in Europe plays an important role. This started in Great Britain and developed to West and East Europe. These are subsequently the regions with most active low-cost carriers and in which most airports are located on which low-cost carriers operate. Also population density, income, and tourism could play an important role, when these factors are strongly present, it appears there are more low-cost carriers active and there are potential more airports located.

More information on the results of the buffer analysis can be found here. Also to be found there is information on different top 20s of airports with most other airports located within the 200-kilometer buffer zone. One needs to keep in mind the different restrictions of this buffer analysis. The analysis is carried out with only the airports on which a low-cost carrier operated in 2005, alternative airports on which possible a low-cost carrier could fly have been left out. Another restriction is the landside accessibility that has not been taken into account. In case of the LCC full-service type the airport on the Greek isle Santorini has a high value, although in reality it is very inaccessible and therefore offers almost no competition for the surrounding airports. Because of lacking data these factors where left out of the analysis.

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