Secondary airports:
– City-pairs are connected mainly from the secondary or even tertiary airports—such
as London Luton—that are less expensive in terms of landing tax and handling fee
and experience less congestion than the larger ones, such as London Heathrow.
– Small airports will strive to gain the LCC’ operation and the usual way is to reduce
airport charges.
– Similarly, air transport activity generates welfare that is a multiple of the airports’
activities, inducing regional economic and social development.
– Local authorities recognize that the LCC operation is a potential driver for social
and economic developments, and are willing to provide financial help (for example:
tax exemption, marketing support while LCCs start a new connection).
– The reduced airport fees can be understood as an incentive, as most of these
secondary airports are public. These incentives can be quite relevant and can be
deemed to contravene the EU’s competition rules.