An analysis of trust governance mechanism in airline-airport relationship with resource dependence theory and transaction cost theory perspectives

In the airport sector, developments have transformed airport operations into more commercially focused centers. This situation has raised the question of how to execute airport-airline relationship which is interdependent. In interdependent relationships, trust-based governance is not only the least costly governance structure but also crucial for fostering cooperation in long-term relationships. When considering the nature of the relationship, it is observed that environmental uncertainty and asset specificity are high. Transaction cost theory suggests that under conditions of high uncertainty and asset specificity, trust governance mechanism can be the least costly governance structure. Similarly, resource dependency theory also indicates that in situations with high environmental uncertainty, dependencies can be managed through trust governance mechanisms. Therefore, this study aims to analyze the trust governance mechanism in airport-airline relationships. Drawing from the perspectives of resource dependency theory and transaction cost theory, this research analyzes the trust governance mechanism in airport-airline relationships using case studies of traditional airline-primary airport and low-cost airline-secondary airport. The research findings indicate that traditional airline and primary airport relationship is governed by contract-based trust, while the low-cost airline and secondary airport relationship is based on goodwill-based trust. It can be argued that the history of the airport-airline relationship and the belief in the continuity of the relationship have a positive impact on trust.