Urbanization is a worldwide trend that drives an immense increase in air traffic demand. The worldwide aviation network makes global business possible which generates economic growth, creates jobs and facilitates international tourism and trade. Many of the world's transport hubs like The Greater London Area have allocated this demand over various airports, which forms a multi-airport region (MAR). Airport expansion plans and infrastructural investments in multi-airport regions, therefore, depend not only on the total level of air traffic growth but on its allocation. Therefore, the goal of this research is to develop an analysis framework for the market dynamics driving airport activity levels, focusing on multi-airport regions, and analyse how this provides a base for strategic decisions in the region. This goal was split into two sub-goals. First, understand the evolution of airport’s market shares based on the allocation of air traffic passengers amongst airports in a chosen MAR. Second, understand the market dynamics of passenger integrated transport systems in a MAR. Forecasting its underlying determinants can provide estimates for the future transport system in a MAR, which accommodate and facilitate smooth future operations of used logistical components. Greater London was chosen as a multi-airport region.

Part one consists of a quantitative model that can compute annual air traffic demand for a multi-airport region, and the allocation of this demand over airports within, for the period 2010 - 2050. Aggregate air traffic demand is based on UK's GDP projections and the allocation model was based on the relative performance of airports in terms of their accessibility, airfares and connectivity. A multivariate regression model was applied correlating historical (2010 - 2019) airport performance to their respective market shares. The results show regional air traffic demand is likely to grow 82\% over the next 30 years. Based on 60 observations, the model can predict its market shares with an R-squared of 0,952.

Part two progresses the quantitative model to generate a forecasting framework for the next 30 years for various important aviation-related variables in the region. This concludes that for London Gatwick, City and Stansted airport the projected growth in air traffic demand will not form any capacity problems, but for London Heathrow, Luton and Southend airport, it will. A major factor influencing this is the rising environmental awareness and increasing costs for carbon emission abatement. London Heathrow Airport, being UK's most important airport, together with the UK government has identified several developments to facilitate the expected growth in air traffic demand.