Airport Charges Policy as a Tool for Achieving Competitive Advantage in the Aviation Market

Air transportation plays an important socio-economic role, and an airport, as part of the transportation system, is a significant component of the national infrastructure. The airport is not just a provider of aviation services, whose activities are regulated by the state, but is a self-sustainable commercial complex with its own business goals and development strategy aimed at the growth and economic efficiency of operations. Strengthening its position in the Nordic region is the strategic goal of Riga International Airport. Competitive advantage in airport charges policy should contribute to the accomplishment of this strategic goal - Riga Airport should be the first choice for airport transit passengers, airlines and regional enterprises. However, although Riga Airport has a competitive advantage in charges, which are the lowest among the major competitor airports (Helsinki-Vantaa and Stockholm-Arlanda airports), it does not have a market leader position in Northern Europe. The aim of the paper is to analyse the charges policy of Riga International Airport, RIX in comparison with competitors in Northern Europe and to develop recommendations for improving the charges policy as a tool to enhance the competitive advantage of the airport in the Nordic region. To achieve this aim, the authors consider the theoretical aspects of competitive advantage as the basis for the accomplishment of the strategy, analyse the position of Riga Airport among competitors, including passenger traffic as well as on charges for a particular aircraft. To fulfil these tasks, the authors use such methods as analysis and collation of materials of scientific research and periodicals, comparative analysis and costing. The conclusions and recommendations for improving the charges policy are addressed to the management of Riga International Airport and can be taken into account when developing strategic plans for the airport development roadmap.