Transportation Research A paper June 2005.pdfVIP

ABSTRACT This paper explores the economic implications of new policy initiatives that seek to introduce terminal competition at Dublin Airport, in the context of the recent regulatory history of the three busiest Irish airports. There are very few examples of direct competition occurring between rival terminals at a single airport. The paper reviews the particular circumstances that have motivated the Irish government to consider the introduction of terminal competition, and explores various aspects that will be relevant to the modelling of the microeconomic consequences and implications of such competition. Keywords: Transport Economics; Regulation; Irish Aviation; Airport Competition; Terminal Competition. 1 GEARY DISCUSSION PAPER GEARY DISCUSSION PAPER SERIES SERIES Competition Between Airport Terminals: The Issues Facing Dublin Airport Dr Aisling Reynolds Aisling Reynolds-Feighan is a member of the Economics Department in UCD and a Research Associate in the Policy Evaluation Programme, and co-ordinator for the INTERREG Airbridge Project at the Geary Institute (ISSC). Peter McLay Peter McLay is a PhD student in Economics and a researcher on the Air bridge Project at the Geary Institute (ISSC). This paper is produced as part of the Interreg Airbridge Project at the Geary Institute; however the views expressed here do not necessarily reflect those of the Geary Institute. All errors and omissions remain those of the authors. Geary WP 2005/06 INTRODUCTION Dublin Airport is the centrepiece of the Ireland’s airport network, dominating all national mea