The sky is the limit? The determinants and constraints of European airports' commercial revenues

This study investigates the determinants of commercial and retail airport revenues as well as revenues from real estate operations. Cross-sectional OLS, 2SLS and robust regression models of European airports identify a number of significant drivers of airport revenues. Aviation revenues per passenger are mainly determined by the national income per capita in which the airport is located, the percentage of leisure travelers and the size of the airport proxied by total aviation revenues. Main drivers of commercial revenues per passenger include the total number of passengers passing through the airport, the ratio of commercial to total revenues, the national income, the share of domestic and leisure travelers and the total number of flights. These results are in line with previous findings of a negative influence of business travelers on commercial revenues per passenger. We also find that a high amount of retail space per passenger is generally associated with lower commercial revenues per square meter confirming decreasing marginal revenue effects. Real estate revenues per passenger are positively associated with national income per capita at airport location, share of intra-EU passengers and percent delayed flights. Overall, aviation and non-aviation revenues appear to be strongly interlinked, underlining the potential for a comprehensive airport management strategy above and beyond mere cost minimization of the aviation sector.

Solar cycle 24: what is the sun up to?

March 2012 brought the first solar and geomagnetic disturbances of any note during solar cycle 24. But perhaps what was most remarkable about these events was how unremarkable they were compared to others during the space-age, attracting attention only because solar activity had been so quiet. This follows an exceptionally low and long-lived solar cycle minimum, and so the current cycle looks likely to extend a long-term decline in solar activity that started around 1985 and that could even lead to conditions similar to the Maunder minimum within 40 years from now, with implications for solar-terrestrial science and the mitigation of space weather hazards and maybe even for climate in certain regions and seasons.