1 The competitive landscape of air transport in Europe Rogier Lieshout (corresponding author) SEO Aviation Economics Roetersstraat 29, 1018 WB Amsterdam, The Netherlands Phone (+31) 020 5251672 Fax (+31) 020 5251686 E-mail: r.lieshout@seo.nl Paolo Malighetti Researcher, University of Bergamo, Dept of Economics and Technology Management, Viale G. Marconi 5, 24044 Dalmine (BG), Italy Phone (+39) 035 2052023 Fax (+39) 035 562779 E-mail: paolo.malighetti@unibg.it Renato Redondi Associate Professor, University of Brescia, Dept of Mechanical Engineering, Viale Branze 38, 25123 Brescia, Italy Phone (+39) 030 3715645 Fax (+39) 02 700529452 E-mail: renato.redondi@unibs.it Guillaume Burghouwt SEO Aviation Economics Roetersstraat 29, 1018 WB Amsterdam, The Netherlands Phone (+31) 020 5251642 Fax (+31) 020 5251686 E-mail: g.burghouwt@seo.nl Abstract Competition between airlines and airports increased significantly since the deregulation of the intra‐European air transport market in 1997. The passenger has a wider choice in terms of routings and departure airports than twenty‐five years ago and pays a lower price. In this paper we investigate in which parts of Europe airline and airport competition are most intense and how the competitive landscape has changed since the liberalisation of the intra-European market. Competition levels are modelled for all air transport markets available to consumers in each western‐European municipality using a Multinomial Logit (MNL) model. This allows us to determine how competitive the air transport product available to consumers in each of those municipalities truly is and how competition levels have changed. As opposed to most other competition studies we take all viable direct and indirect flight alternatives into account, as well as competing alternatives from nearby (adjacent) airports. This makes it the most extensive analysis of competition in the European aviation industry performed to date.