Heathrow And Gatwick Falls Into An Oligopoly Market

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Market structures are responsible for the pricing, distribution and quality of many products. Following on from above, the market structure for airport operators falls into an oligopoly market. This is where a few organisations have a higher share of the market than most. Heathrow and Gatwick have a larger airport hub, meaning more flights and more passengers. This means that smaller airports such as Bristol and Birmingham have to drive down airfare prices, thus resulting into a competitive market. Bristol airport have tried to combat the market power of Heathrow and Gatwick by employing a new strategy of offering only short distance air travel. Without Competition the market would turn into a monopoly structure. This absence of competition

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