Our competitive environment
For several years now, the business environment of an airport operator such as SEA Group has been undergoing competitive pressures caused by the hybridization of the aviation industry.
Most traffic growth is generated primarily by low-cost companies (LCC) and, to a lesser extent, by ambitious non-European airlines expanding their presence in Europe. Low-cost carriers are evolving their offerings to attract mid to high-end passengers, and on the other hand full service carriers are restructuring and simplifying their offer and, like low-cost carriers, they are basing their competition on margins rather than volumes.
These trends determine intense competition between airports, both in volumes and intensity. Generally speaking, aviation revenues from traffic fees continue to decline, increasing the competitive pressure, which pushes operators to offer economic incentives to airlines to ensure the desired traffic volumes.
These incentive systems are part of the sales strategy of the vast majority of European airports. Pressures on aviation revenues are pushing airports to intensify the development of alternative sources of income, particularly retail, food & beverage, but also real estate, advertising and parking. The ability of operators to modernize and develop the airports to provide greater quality and connectivity is therefore more and more dependent on increasing business revenue.