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Air travel banks: A public-private partnership approach to air services development at smaller airports
Journal of Airport Management,
10
(2),
200-208
(2016)
Abstract
Financial incentives to develop air services at smaller airports are scrutinised by regulatory authorities. This is especially true within the European Union with its new guidelines on state aid and consequent rulings on the repayment of subsidies provided by airports to airlines that violate state aid rules. Private funds used to develop air services are not state aid. For this reason, air travel banks (ATBs) might be a promising air services development tool for smaller airports. This concept builds on the idea of binding monetary pledges from air transport users that constitute a revenue guarantee for new or expanded air services. This paper describes the ATB public-private partnership approach and offers advice to airport authorities and regional development agencies considering this approach to air services development without public financing.
Keywords: air services development; air travel bank; public-private partnership
The full article is available to subscribers to the journal.
Author's Biography
Richard Klophaus is professor of business management, transportation and logistics at the Worms University of Applied Sciences, Germany. He is also executive director of the Competence Center Aviation Management (CCAM), serving as a consultant for both government and the aviation industry. His current projects include airport planning studies. Professor Klophaus’s career began at Lufthansa German Airlines in the fields of network management, pricing and revenue management. He holds a PhD in economics from the University of Mannheim.
