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The economic importance of Schiphol's hub function


Publication number: 2015-22
Authors: R. Lieshout, G. Burghouwt, T. Boonekamp
Commissioned by: Ministries of Infrastructure and the Environment, Economic Affairs and Finance
Published by: SEO Amsterdam Economics

Over the years, Amsterdam Airport Schiphol has grown into a hub airport with an extensive network of destinations. Many of these destinations are offered by hub carrier KLM and its partners. On average, 70 percent of all passengers on every intercontinental KLM flight consist of transfer passengers. It enables KLM to offer a greater network of destinations than would be possible based on local demand only. This contributes to the accessibility (connectivity) of the Netherlands; many destinations can be reached directly several times a day.

If Schiphol would lose (part of) its hub function for whatever reason, its network would become less appealing and the accessibility of the Netherlands would decrease. Travel costs for passengers would increase, negatively affecting Dutch welfare. The present study quantifies the direct welfare impact of diminished accessibility of the Netherlands using three scenarios that differ with regard to the extent to which Schiphol's hub function is reduced.

In addition, it provides an estimate of each scenario's short-term effect on the added value (GDP) and employment based on previous research by Decisio. This approach differs from the welfare-theoretical approach. It is important to stress that the results of these two approaches cannot be combined.
For additional information, please contact Karin van Rooijen: +31 (0) 70 456 7794 / Karin.van.Rooijen@minienm.nl


Category: 2015, Rogier Lieshout, Thijs Boonekamp, SEO Aviation Economics