Bootstrapped scale efficiency measures of UK airports

This paper introduces the bootstrapping methodology to analyse and test the scale efficiency of airports. The results from a sample of 27 small and large UK airports indicate that most large airports are scale efficient or operating in a region of decreasing returns to scale, while most small airports are operating in a region of increasing returns to scale. We relate the results to the current industry trends and provide directions for future research.     

Inefficiencies and scale economies of European airport operations

In this paper we argue that European airports, on average, are inefficient. Airline inefficiency (low load factors) appears to contribute significantly to airport inefficiency in terms of air passenger movements. We find that the average airport in Europe operates under constant returns to scale in “producing” air transport movements and under increasing returns to scale in producing passenger movements. These operating characteristics are statistically tested in a stochastic frontier model. Using data envelopment analysis, in which the number of runways is used as a fixed factor, technical and scale efficiency coefficients have been assessed. There appears to be no region-specific effect in that an airport in a certain country or region is on average more (in)efficient.     

Relative efficiency of European airports

Using data envelopment analysis, efficiency ratios for European airports are determined. It appears that most airports are operating under increasing returns to scale. This is also reflected in the most productive scale size determined for the airports.     

Productivity changes in Portuguese bus companies

This paper proposes a framework for benchmarking Portuguese bus companies and the rationalisation of their operational activities, using the Luenberger productivity indicator. A key advantage of this method is that it allows for both input contraction and output expansion in determining relative efficiencies and productivity changes. For comparative purposes, a Malmquist index is also estimated. The Malmquist index overvalues the Luenberger productivity indicator. Results indicate that public bus companies have similar efficiency to private bus companies. Several interesting and useful managerial insights and policy implications arise from the study.     

我国上市物流公司效率分析

运用DEA模型测算我国21家物流上市公司的总体技术效率、纯技术效率和规模效率,测算结果表明:我国上市物流公司总体技术效率不高,港口类和运输类上市物流公司的总体技术效率相差不大,上市物流公司投入要素组合比较合理,但存在投入冗余、产出略显不足的问题。在此基础上,提出相应的对策:建立合适的管理体制,加大在高新技术上的投入比重,削减业务成本及管理费用,促进资源的优化配置,调整投入要素组合。     

Measuring the efficiency of Mexican airports

This paper examines, by means of data envelopment analysis, the operational performance of 37 major airports in Mexico. Three analyses are performed considering returns to scale and efficiency scores: constant return to scale composed by technical and scale efficiency, variable return to scale based on pure technical efficiency, and a ratio of these two to measure scale efficiency. Four Mexican airports achieve overall efficiency. Some hypotheses are tested to validate managerial recommendations and derive policy implications.     

Competitive tendering and structural changes: An example from the bus industry

This article evaluates the structural changes that have taken place in the Norwegian bus industry after competitive tendering was introduced in 1994 in order to show that this procurement mechanism implies more than just efficiency gains. In a long-term view the many takeovers and increasing ownership links among the transport companies may weaken the competitive element of tendering and lead to an unwanted market situation with only a limited number of suppliers. To maintain market competition, the transport authorities should differentiate their procurement strategy and use competitive tendering together with other public procurement approaches.     

Economies of scale and density in urban rail transport: effects on productivity

This paper examines economies of scale and density in urban rail transport. It isolates the effects of constant and non-constant returns on output and productivity growth using data relating to 17 rail systems in cities around the world. Estimates reveal constant returns to scale but increasing returns to density. The productivity model shows that total factor productivity change has been of great importance in differentiating the output performance of urban rail systems. Our analysis of average labour productivity confirms the importance of shifts to other factors of production and technological change in explaining changing levels of output per worker.     

How efficient and productive are road toll companies?: Evidence from Norway

This article evaluates the technical efficiency of toll companies, i.e., how toll companies perform relative to each other, their productivity, and whether toll companies improve their efficiency from one year to the next relative to the best performers. The rationale for this study is that Norwegian road toll companies have been criticized for not being as efficient as they should; it has been claimed that some have very large operational costs compared to their peers and hence are inefficient. The framework for analysis is Data Envelopment Analysis and its subsequent Malmquist Productivity indices. The data are from the accounting period of 2001–2004 and contain information on 18 companies. The results show that: (1) there is a potential for efficiency increases of about 14%, (2) there are economies of scale in the industry in that larger companies (as measured by number of lanes served) tend to be more efficient compared to smaller companies, and (3) there has been a productivity increase in the sector of about 1%, and this progress is due more to companies employing a newer and more effective method for collecting funds and less to improving efficiency from one year to the next. Finally, these findings suggest that the Norwegian road authorities should consider reorganizing the toll sector such that the inherent economies of scale are utilized.     

The impact of economic policy uncertainty on stock returns of Turkish tourism companies

Economic policy uncertainty (EPU) has various implications for financial markets. This study examines the effects of EPU on stock prices of listed tourism companies in Turkey for the time period of 2002–2013. We show that EPU in Europe and Turkey has significant negative effects on tourism index returns. The finding reflects that stock returns of the Turkish tourism companies apparently depend on domestic and international economic uncertainty. Among the included macroeconomic variables, consumer confidence index is the only factor which has an impact on stock returns.     

Productivity and efficiency in urban railways: Parametric and non-parametric estimates

This paper formulates and compares parametric productivity estimates and non-parametric efficiency scores for urban rail firms. It outlines a decomposition of total factor productivity (TFP) change and proposed some hypotheses about how this relates to an analysis of efficiency using data envelopment analysis (DEA). TFP is empirically evaluated using estimates from a translog production function. The estimation also tests some hypotheses about the elements that comprise firm specific ‘technology’. The results show that while estimates of returns to scale differ using the TFP and DEA methods, the ranking of urban rail efficiency is broadly similar.     

The technical efficiency of Canadian urban transit systems

This paper uses a bootstrap data envelopment analysis (DEA) method to estimate technical efficiency scores for Canadian urban transit systems from 1990 to 1998. Bias and confidence intervals are estimated for the efficiency scores. A Tobit regression is used to analyze the sources of efficiency change. The paper finds that the original efficiency scores are biased. The bootstrap results indicate that the average technical efficiency of the transit systems is about 78%. Most transit systems experience increasing returns to scale. While higher average transit speed increases efficiency peaking decreases efficiency, which reinforces previous DEA efficiency studies.     

Economies of traffic density and scale in the integrated air cargo industry: The cost structures of FedEx Express and UPS Airlines

This paper examines the cost structures of the leading integrated air cargo carriers, FedEx Express and UPS Airlines. A total cost model is estimated for the two carriers using quarterly data on domestic operations and costs over a nine-year period (2003–2011). The estimated model indicates that the integrated industry exhibits increasing returns to traffic density and constant returns to scale. Accounting for carrier-specific differences in cost structure and network size, FedEx Express is found to be more cost-efficient than UPS Airlines. Looking at the carriers individually, UPS Airlines exhibits substantial economies of traffic density and constant returns to scale while FedEx Express' cost structure is characterized by weak economies of density and constant returns to scale. The combined effect of returns to density and returns to scale on the cost structures of integrated carriers is captured by economies of size. Both FedEx Express and UPS Airlines exhibit economies of size, indicating that carriers in the integrated industry can be more cost efficient by making appropriate adjustments to their network size as their output grows. Moreover, the relative cost-efficiencies of the carriers are reversed when their network-size differences are not controlled.     

Bus rapid transit as a neoliberal contradiction

Bus Rapid Transit (BRT) is being implemented as a neoliberal project, but it creates contradictions that challenge the premise of neoliberalism. BRT projects are affordable rapid transit infrastructure, but they are also an impetus to restructure the urban bus sector in developing cities with informal mass transport. The dominant model of BRT implementation creates a market for bus service from large private companies where the government takes on the risk and brands the service as part of the city's attempt to be a ‘world class’ city that can attract mobile capital. However, BRT and the formalization of the bus sector can increase the power of urban residents by firmly putting transport in the public sphere; workers by increasing the incentives for collective action; and bus riders by prioritizing space for buses over cars. But these are only openings that require action to take advantage of the contradictions.     

Explaining changes and trends in the airline industry: Economies of density,multiproduct scale,and spatial scope

Changes in the shape and size of airline networks have not been explained clearly from a cost perspective based on the finding of increasing returns to density for given route structures and constant returns to scale for variable network size. We reassessed the estimates of these economies by using new scale and scope indices, finding savings due to changes in route structures and various types of economies of spatial scope not previously calculated: network size, trunk-local services and domestic-international services. Results contribute new insights on the role of cost incentives in the observed changes and trends in the airline industry.     

A comparative efficiency analysis of Spanish and Turkish airports

AENA in Spain and DHMI in Turkey operate a large majority of the airports in their respective countries. These two airport operators share some similar characteristics, but also present many differences with respect to their management strategies. For instance, the Turkish DHMI introduced a Build-Operate-Transfer (BOT) model and concession agreements, which enables active private participation in airport management. In contrast, management and operation responsibilities at all airports in Spain –with a few exceptions-have remained with AENA. This paper utilizes a data envelopment analysis (DEA) to compare the relative efficiency of airports within AENA and DHMI for the years between 2009 and 2011. Based on the efficiency scores, it further identifies the sources of inefficiencies resulting from various management strategies and other external factors. The results indicate higher average efficiency levels at Spanish airports, but private involvement enhances efficiency at Turkish airports. The majority of the airports in Spain and Turkey operate under increasing returns to scale. Certain policy options, including a higher private involvement and improvement of the airport network by closing some inefficient airports, should be considered in order to increase the airport efficiency in both countries.     

Tourism and transport systems in mountain environments: analysis of the economic efficiency of cableways in South Tyrol

This paper examines the economic efficiency of cableways in the Autonomous Province of Bolzano, Italy, and relates it to sustainability and tourism issues. Cableways represent an environmental-friendly mode of transport that enables access to remote and environmentally delicate areas. Thus, examining cableways efficiency informs policies that foster regional competitiveness from a sustainable development perspective. Employing annual data from 2002 up to 2008, the pure technical efficiency and scale efficiency are computed using a panel Data Envelopment Analysis. Overall, the empirical findings reveal that this type of transport in the Italian Alps can be regarded as relatively economically inefficient and most of the cableways denote decreasing returns to scale. Nevertheless, some distinctive features are detected amongst cableways classified by district. Policy implications are drawn to help economic agents improve their efficiency scores.     

城市轨道交通的公交换乘问题与对策分析

城市轨道交通车站与公交线路车站的衔接设施按其规模和等级可分为3种类型:综合枢纽站、大型接驳站和一般换乘站。乘客换乘的主要问题可概括为设备接续和组织协调两大类,合理规划换乘设施可提高乘客的换乘方便程度及整个公共交通系统的运转效率。针对城市轨道交通的公交换乘问题给出了相应的优化对策。     

Occupancy,oil prices,and stock returns: Evidence from the U.S. airline industry

This paper examines whether occupancy of seats affects stock returns of airline companies and how this relationship is affected by WTI oil prices. Our approach combines revenues (occupancy) and costs (oil prices) for 33 U.S. airline companies from 1990 to 2019. Using travel capacity utilization data from U.S. carriers at monthly frequency and exploiting fixed-effects regression models, we document a positive relation between occupancy and stock returns, which is attenuated by oil prices. The role of oil becomes larger with asymmetries: the effects of oil prices are higher when moving up than down. Airline stocks always respond by more than the overall stock market.     

Evaluating the multi-period efficiency of East Asia airport companies

The aim of this study is to analyze how internal operating sub-processes and annual operations of airport companies influence the overall efficiency. The multi-period Network Data Envelopment Analysis is used to evaluate the efficiencies and the efficiency changes for East Asia airport companies. The results indicate that the overall efficiencies of airport companies during a specified period of time are affected by the system efficiency and the sub-processes’ efficiencies in individual periods. Furthermore, the overall efficiency change is determined by the sub-processes’ efficiency changes. According to the operating decision analysis matrix, managers can discover the inefficient sub-processes and formulate the improvement countermeasures.