PPRuNe Forums - View Single Post - Manchester-2
Thread: Manchester-2
View Single Post
Old 21st Nov 2020, 22:02
  #4556 (permalink)  
OzzyOzBorn
 
Join Date: Oct 2017
Location: SYD
Posts: 529
Received 0 Likes on 0 Posts
It’s a really good question and maybe the follow on would be:
- would the regulator ( CAA) feel that it’s in the public interest?
- if so, will there be further consolidation in the North, maybe loss of DSA, HUY, EMA freight only?
- NCL to be decimated by EDI?
- would the regulator then add controls to car parking charges, max time from chocks to baggage on carousel (customer metrics in a monopolistic airport environment) etc?
This really comes down to whether you want to live in a free-market economy or a command economy. In a free-market economy, businesses are free to compete with each other for customers. In a command economy, state officials dictate outcomes. I'm a free-market advocate myself, though I note the arguments in favour of both systems. Our airports are generally free to compete with each other for business, and this process has generally produced good outcomes for the travelling public. Liverpool has done well in competing for the attentions of Ryanair, EasyJet, Wizz and Blue Air. They also won a promise of business from Adria Airways over the Manchester option ... though that carrier failed before anything came of it. No complaints from MAN about "unfair competition" in any of these instances, though when it is MAN which looks to have the upper hand, cries of 'foul' come flying out of Merseyside. No, the free market works both ways. None of the parties should have their hands tied in bidding for business.

And indeed, this process is not just about the winners. Ryanair has done well out of playing off MAN / LPL / LBA against each other. EasyJet has played off MAN and LPL. And, as cited upthread, Wizz has form for flirting with an unserved airport to secure better terms at their preferred base of choice. Could this be happening again? We don't know, but it remains a possibility. If they end up choosing to expand at LPL / DSA, MAN will have to accept that: it is a competitive free market outcome. But the reverse is also true.

Whatever your ambitions for your preferred local airport may be, it is a fact that this process of competing for business results in lower fares for consumers. And that is what the competition authorities like to see. MAN is doing nothing wrong in competing for business with neighbouring airports. And, conversely, neither are they in bidding against MAN.

And as for the airlines: they've never needed improved terms from suppliers more than they do now.
OzzyOzBorn is offline