Regional airline-rail alliances as a competitive strategy for airports : submitted in partial fulfilment of the requirements for a Masters of Aviation degree at Massey University, New Zealand

Abstract

There are currently 182 airport-rail links worldwide, with more being built every year (IARO, 2012). The focus of these links, and the current associated literature is generally on highspeed rail and CBD-centric services. The purpose of this study was to determine whether the relationship between airports with regional airline-rail alliances resulted in a relatively more successful competitive strategy than those airports without such relationships. Using a comparative case study method, four airports were analysed to address this question. Firstly, the study uses Porter’s (1979) five forces model to analyse industry competition. Several common factors were discovered that drive the strategies in each of the four case studies. Secondly, the study found that the successful case studies have strategic options that are aligned with Porter’s (1980) model of three generic competitive strategies. Finally, funding support from central government is essential to the building and sustainable operation of all four of the case studies. The study concludes, that regional airline-rail alliances are beneficial to airports as a competitive advantage, provided the political support for infrastructure investment is present.