What is dual till in regard to airport pricing?
The ‘dual till’ system requires an airport to separate its aeronautical and non-aeronautical businesses into two separate cost-centres. The hybrid till uses some commercial revenues to offset aeronautical costs.
What is Hybrid airport?
A hybrid till model is a combination of the existing single till model, under which all airport activities – including aeronautical and commercial – are taken into consideration while determining airport charges, and the dual till model, under which only aeronautical activities are taken into consideration to fix …
What is till model?
The hybrid till model is a combination of the single till model, under which all airport activities, including aeronautical and commercial, are taken into consideration while determining airport charges, and the dual till model, under which only aeronautical activities are taken into consideration to set airport …
Why is there a single Till at the airport?
The single till is justified because there is an interdependency between the passengers airlines transport to airports and the non-aeronautical revenues (e.g. retail, car parks) they generate for airports.
Are dual tills good or bad for air traffic?
As dual till may result in higher aeronautical charges and may not only negatively impact the development of air traffic, but additionally create the need for difficult and detailed cost and asset allocation between aeronautical and commercial tills”
Is considering double till regulation synonymous with forgetting the externalities?
We conclude as well that separating the two activities, i.e. considering the double till regulation, is synonymous of forgetting the externalities potentially existing between the two sides of the market.
What are the advantages of a dual-till structure?
Then, with a sparkle of cunning regulatory skills, ACI also warns that “A dual-till structure also allows the ‘monopolistic’ part of an airport’s business – the provision of core aeronautical activities – to be regulated, while ensuring that the other parts of the business can be run using the normal marketplace competition rules”