The Effects of Low Cost Airlines Growth in Italy
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Abstract
In recent years, low cost carriers (LCCs) have been the fastest growing sector of the aviation industry. The routes served by these carriers were undersized in comparison with principal routes, but deregulation made possible an efficient access to many new markets. The new generation of regional and low cost carriers have enabled a better matching of capacity to demand on routes previously served solely by large airlines, experiencing an increasing role in spatial development. Regional airports impact on local economies directly as a catalyst for other on-site economic activities and indirectly as a regional economic multiplier. This paper analyses the relation between LCC passenger traffic, secondary airports utilization and regional economic development. We underline that increased service at Italian secondary airports could affect economic development in the surrounding regions, including increased tourism and the potential for cluster development.
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