The Liberalisation of Ground Handling Services in the European Union

Intermediate Examination Paper from the year 2006 in the subject Business economics - Business Management, Corporate Governance, University of Cooperative Education (University of Cooperative Education ), language: English, abstract: For the longest European air traffic industry was stamped by two contradictive markets: 'In the air deregulated, on the ground dominated by monopolies'1. This statement also described the situation of the market for ground handling services at European airports for the longest. Many books have been published on the liberalisation of the air traffic industry of the United States of America as well as of Europe focusing on the core markets. Still the liberalisation process can only be successful, when the industry's fringe markets are included in the process. This paper shall first give a brief overview on the liberalisation of the European air traffic industry provided with certain definitions and then draw a closer look on the liberalisation of ground handling services, which will be rounded up by the European Commission's legal proceeding against Frankfurt/Main Airport in 1998. Finally it will describe the market situation today, including the effects on prices, quality, employment and working conditions.