Let’s imagine the following picture. Near our beautiful, charming city a
well organized, well staffed, well equipped high quality airport is working.
Citizens like it as well as trading companies. People can reach the airport
easily and quickly with low cost, airport crew is always smiling so people like
to travel. That means active airport activity through high demand. Because of these
tendencies the environment for airlines is favourable, airport attracts them.
The result will be more airlines who compete which drives the prices down and
led to better services or simply larger airport capacity. The process makes the
airways even more attractive to businessmen, companies and turists. The whole
thing ends up like a city with more exporting and importing companies more
employees who can share their ideas and get ideas from abroad so economic
prosperity begins.
That story about circular causation tells us spillover effects are in the
table not appear directly in the profit of the airport since the process has
advantages to the broader economy. As we see the airport doesn’t have the right
amount of incentives to stimute airtraffic, state should play a role. The main
question is simple: HOW? Some possible answers follow.
State owned
airline
A case strongly related to Malév. Maintaining a
state owned airline for create those spillover effects has advantages. Focus on
the disadvantages! This is prohibited by the EU law because of this action’s
countercompetitive impacts. In the past that plan is worked, see figure, which
shows how decrease airport traffic in short run after Malév went bankrupt. In
the short run Budapest Airport (BA) has difficulties to fill the gap that Malév
made but in the long run the absence of Malév may push down traffic intensity.
In reality set up a sate owned airline is not a possibility.
Ruin down alternatives
With the MÁV’s recently launched new train line
Schwechat, the largest airport of the region, can be reached in four hours. No
question this causes pain to BA, so to stimulate it’s airtraffic the MÁV
project should be stopped. Not suprise the BA lobby raised their voice against
the issue.
Is to stop MÁV trains travelling to Schwechat
useful? Yes it is useful for BA. Is it useful for the citizens? I have doubts.
Supporting the airport is not equals with supporting the country. If people
travel to Schwechat to take their plane there rather than to travel from Ferihegy
this will deliver the evidence that MÁV project is useful for citizens. In very
short run stopping that railway line can be useful if BA is on the edge of
collapse, but in other cases it is not a good idea.
Reach the
airport easier
There is a plan to build a fast train line from
Keleti railway station to Ferihegy. State currently having the negotiations
with the chinese constructor. May the investment doesn’t pay off but again think
to spillover effects! If Hungary supports the project in a clever way it can
have positive overall effects.
Develop
airport services
A lot of people complaining about the rudeness of
airport workers, about the lack of organisation in Ferihegy (for example
airport buses) and about flights that are usually late. What about provide
incentives to solve these problems? Or airport can introduce some yummy
campaign based on the peolple’s psychological factors to attract them. The
airplane museum next to terminal 2 is a good step.
Cope with
transit
Pass through passengers and cargo should be
served. Some experts say low cost airlines are not able to handle the transit
traffic. What can we do? This question is not clear and need some
consideration.
Is developing air traffic harm other means of transport? Which are the
alternetives of air travel? Since air transport don’t have real alternative the
stimulation effects economy and not just damages others.
What do you think, attractive air travelling causes bustling business life
or vica versa? How do you think state should stimulate the airtraffic? Do you
have ideas? Share with us in comment below!
Dávid Réfi
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