Aviation - a qualitative forecast of air passenger segments with focus on the West Coast region of Sweden

Abstract

The purpose of this thesis is to provide the Swedish Civil Aviation Administration with information regarding the market development within the private- and business passenger segments’ present and future needs, demands, and volumes. The thesis focuses on the end customers, as these will determine the future value chain constellation. The main area in focus is business and consumer passenger preferences today, tomorrow and the forthcoming ten years. We also provide a description of macro factors affecting the growth of passenger volumes. This will be used to provide an insight into the relation between economical and political factors and the amount of air travel. The results will aid to the decision-making process regarding the future development of the Landvetter airport. The result will also be used to secure that relevant traffic can be attracted to the airport. Traditionally the aviation market has been rather stable due to governmental regulation. Today it has shifted into a highly turbulent market situation where many aviation actors are desperately fighting to increase their market share. This has made it necessary for airports to focus on the end user, i.e. be proactive instead of responding to short-term trends among aviation actors. The outcome of the thesis shows that business passengers still value flexibility over price. Private passengers, on the other hand, focus solely on the price issue when choosing airline and destination. The complexity of the aviation market today makes the travel management function increasingly important in the future.