Browsing by Author "Pagliari, Romano I."

Now showing 1 - 2 of 2
  • Thumbnail Image
    ItemOpen Access
    Airport competition within the Scottish lowlands region
    (Elsevier, 2019-11-06) Pagliari, Romano I.; Graham, Anne B.
    The aim of this paper is to undertake an assessment of airport competition within the Scottish Lowlands region, which has experienced significant variations in economic development, and to examine whether competitive forces have been strengthening or weakening in recent years. This region covers the airports of Edinburgh, Glasgow and Prestwick in the last twelve years they have all experienced changes in ownership. BAA which had, for many years, operated both Edinburgh and Glasgow airports, sold the former to GIP in 2012 whilst in 2013 the Scottish Government purchased the privately-owned Prestwick. During this period there were also significant changes in airline network strategies. In order to assess the competitive pressures facing these airports, three key areas are considered, namely: aeronautical charging policy, the service quality provided and traffic development. The analysis shows that since ownership separation, competition has intensified between Edinburgh and Glasgow, whilst Prestwick airport, which benefitted from Ryanair expansion in the 1990s, is now a significantly diminished competitive proposition in the Scottish Lowland market. This has implications not only for airport policy and economic regulation but also for broader economic well-being in this region
  • Thumbnail Image
    ItemOpen Access
    A critical review of airport privatisation in the Kingdom of Saudi Arabia: Case study of Medina Airport
    (Elsevier, 2019-02-08) Chaouk, Mohammed; Pagliari, Romano I.; Miyoshi, Chikage
    Saudi Arabia is one of the few Middle-Eastern states to have undertaken an airport privatisation programme. Medina was one of several airports that have been privatised in Saudi Arabia when it was awarded to Tibah Airports in 2012 under a Build-Transfer-Operate agreement. This paper compares the performance of Medina Airport in terms of traffic, revenues, costs and profitability with projections made during the due-diligence period prior to the airport’s privatisation. We found that the airport benefitted from favourable market conditions post-privatisation which facilitated the attainment of some important achievements with regard to route development and customer service. However, we also found that profitability was lower than forecast during the due-diligence process prior to privatisation and that this was mainly as a result of unexpected interventions by the regulator GACA. We have raised important policy implications for future privatisation transactions, the success of which is crucially dependent on the Kingdom minimising the level of regulatory risk facing potential investors. There are cultural dimensions, human resources strategies and administrative governance issues in addition to the very specific nature of the socio-political environment which are all factors that need to be considered in future privatisation transactions.