This paper considers the changes to air services that have taken place in the North Atlantic market from 2005-2018. The distribution of frequency and capacity by airport and airline is assessed and also for the airline alliance groups and the different aircraft types. Market concentration is analysed for the North Atlantic as a whole and for the principal airports in each region.
It is shown that the major US mid-continent hubs have lost ground while the west coast and Canadian airports have gained market share. In Europe there has been greater dispersion, driven by the new entrant carriers with point to point flights and the growth of the Reykjavik and Dublin hubs. With the exception of Air Canada, the major operators (including merger partners) have all lost market share although Delta has almost held its position. The Star Alliance has slightly gained market share following the switch of Continental from SkyTeam and the addition of Swiss and Air India but the other global alliances have slipped back. The main beneficiaries are Norwegian, Thomas Cook, Tui, Aer Lingus, Icelandair and WOW. Airlines are shown to obtain higher load factors on routes from their hub airports and European carriers typically perform better in this respect than their US counterparts on the same sectors.
The HHI results indicate that the immunised joint ventures have greatly reduced competition but this has been partially counteracted by the growth of new entrants. Market concentration has increased at New York JFK and Frankfurt but reduced at the four other leading gateways. The aircraft analysis identifies the growing role of the mid-sized wide-body aircraft but the increased presence of the Boeing 757 is also notable.