The impact of low cost carriers on passenger growth at hub airports in Europe

This study examines the effect of low cost carriers on hub airports in Europe. First, hub airports are defined as airports that handle many passengers. Also, the number of connecting passengers must be relatively large. Second, low-fare airlines are defined as airlines that focus on reducing costs in order to lower fares. A regression analysis is executed to determine the impact of low cost carriers on passenger growth rates at hub airports. The results show that airports where low-fare airlines are based have significantly larger passenger growth numbers. The impact is unaffected by the number of low-fare airline bases and changes in population. Further, it is concluded that only bases of low-fare airlines that are no subsidiaries of network carriers are able to attract extra passengers.