Aviation Systems by Unknown

Aviation Systems by Unknown

Author:Unknown
Language: eng
Format: epub
ISBN: 9783030795498
Publisher: Springer International Publishing


Mini Case Avinor

Avinor is 100% owned by the Government of Norway but incorporated as a limited liability company subject to regular laws. Avinor owns and operates 45 airports in Norway and controls all the key aviation infrastructure.

Avinor is the sole provider of air navigation services within Norwegian airspace and has a virtual monopoly of air travel originating and ending in Norway, capturing approximately 99% of domestic passengers and approximately 90% of international passengers.

The Government of Norway has established that the company should operate to support the population in providing a vital form of transportation, rather than seeking to maximise profits. Consequently, Avinor’s reported EBIT margins for its airports are lower when compared to other European airport companies. The company faces limited competition within Norway, as international airports in other Scandinavian countries are not readily accessible to the Norwegian population. Additionally, while other forms of transport are used in the south of Norway, the topography of the country and the large distances between population centres means that air travel is the most efficient mode of travel. Fast rail connections are limited to the Oslo region and cover relatively short distances. The location of Norway on the periphery of Europe also means that air travel is largely required when travelling internationally. The concept still allows the airport system as a whole to be financially profitable, with 4 airports subsidising the other 41 (◘ Fig. 7.2).

Fig. 7.2Cumulative distribution of EBIT share by Avinor airport (Müller et al., 2012)



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