The impact of national macro-environment exogenous variables on airport efficiency

Our paper tests the extent to which airport efficiency is affected by national macro-environmental factors. The literature on airport performance measurement is extensive but has tended to focus mainly on estimating the effects on efficiency from what are mostly endogenous variables. We undertake a two-stage analysis of 59 international airports observations in the Europe and Asia-Pacific regions. The first stage involves the use of Data Envelopment Analysis (DEA) to measure the efficiency of these airports. This is followed by a second stage, where we use a Truncated Regression model that incorporates the Simar and Wilson bootstrapping technique to test the extent to which a set of macro-environmental factors affect airport efficiency. Results reveal that a state's air transport sector output, institutional quality and robustness, the macro-economic environment, safety and security, and human development, all have a significant influence on the performance of airports. The result of this study fills the gap in the literature related to the non-discretionary variables affecting the performance of airports. It also suggests that policymakers and airport managers consider the identified factors when benchmarking airports.     

Analyzing air cargo flows of international routes: an empirical study of Taiwan Taoyuan International Airport

Air cargo demand is an important aspect of the operation and planning of private and public agencies responsible for airports. While most existing studies in this field include only geo-economic characteristics of airports and their hinterlands as explanatory variables, this study develops a gravity model of air cargo flows by trying to incorporate more factors that might influence international air cargo flows of an airport. The model is developed based on the panel data of air cargo services on scheduled routes at Taiwan Taoyuan International Airport during the years 2004-2007. The results indicate that population, air freight rate and three dummy variables, including the regional economic bloc of the “Chinese Circle”(an informal partnership between Hong Kong, Macao, Taiwan and mainland China), the Open Sky Agreements and long established colonial links, are key determinants of international air cargo flows from/to Taiwan. These results suggest a wider array of factors needs to be considered in policy.     

Factors influencing cargo airlines’ choice of airport: An international survey

This paper identifies and evaluates the myriad of factors that influence the choice of airport by freighter-operating airlines. The findings are presented from an international postal survey of airlines operating freighter aircraft on a scheduled non-integrated basis. A number of factors such as night curfews, freight forwarders and airport charges are found to be influential and these are examined against a number of dependent variables such as the airline's home region and operational patterns in order to identify key variations.     

Processing passengers efficiently: An analysis of airport processing times for international passengers

With immense and growing pressure on stakeholders in international airport terminals to process passengers faster than previously, there is a great benefit to understanding which factors affect passenger processing times and in which situations. In addition, storing and analysing the collected data in batch is itself a difficult and time consuming task that could be made much simpler with sequential analysis. We aim to present a method for airport managers to discover which variables are important to understanding passenger processing times and identifying problematic passenger profiles without the need for high computational capacity and full historical datasets.In this paper we introduce Bayesian hierarchical models as a method of sequentially processing data, reducing computation time and obviating storage of large amounts of raw data. We use a range of exploratory models to identify which variables are important to predicting passenger processing time using a dataset from a day of operations at an international airport terminal, then compare a range of regression models. A Bayesian hierarchical regression model based on the model of best fit discovered through exploration is then applied to two subsets of data. We demonstrate that sequential updating based on daily data achieves similar results to batch processing based on full historical datasets and can therefore be used as an alternative in appropriate circumstances. Using the presented models, we find that the airline operating a flight is the most important variable to determining passenger processing time, followed by each passenger's age, sex and nationality. We demonstrate that in our dataset, the passenger profiles correlated with higher mean processing times overall were not the same as those passengers most problematic for meeting processing time targets.     

Factors influencing cargo agents choice of operations in Abuja airport,Nigeria

The ability of an airport to attract traffic can vary within a multi-airport model of operation and highly competitive environment. This study is an effort to examine the factors that cargo agents rank as most important in their choice of Abuja airport cargo transhipment operations. A questionnaire survey was conducted on a random sample of members of the Association of Nigeria Customs Licensed Agents (ANCLA) at Abuja airport for primary data collection. The study employed a combination of Factor Analysis (FA) and Multiple Linear Regression (MLR) to analyse the data collected. The results of the factor loadings indicate airport capacity, airport charges and customs efficiency as the most significant factors that agents consider in their choice of handling cargo through Abuja airport. The three variables were found to have a high correlation relationship (R = 0.802) with the dependent variable of airport choice after subjecting it to regression analysis. This serves as information to airport managers for the airport planning of capacity in cargo operations within multi-airport country such as Nigeria.     

Factors influencing the hub connectivity of Beijing Capital Airport in its international markets

This paper investigates factors influencing the hub connectivity of Beijing Capital Airport (PEK) in its domestic to international markets between 2014 and 2018 based on a random-effect panel data model. The results show that variables representing the temporal and spatial characteristics of connecting flights have significant impacts on the hub connectivity of PEK. In specific, the changeable threshold of maximum connecting time based on different international destination regions has a negative impact. This paper identifies different timetable coordination modes at PEK and shows that the number of indirect connections under adjacent mode is significantly less than that of distant mode. Circuity and directionality are proven to have significant impacts. In addition, factors representing airport characteristics and heterogeneity of international destination regions also affecting the hub connectivity of PEK.     

Airport partial and full privatization in a multi-airport region: Focus on pricing and capacity

This paper studies the capacity and pricing choice of two congestible airports in a multi-airport metropolitan region, under transition from a pure public, centralized airport system to partial or full privatization. We develop analytical models to investigate three privatization scenarios: public–private duopoly, private–private duopoly, and private monopoly. We find that, airports follow the same capacity investment rule as prior to privatization when capacity and pricing decisions are made simultaneously. Pricing rule after privatization becomes more complicated, with additional factors having an upward effect on the privatized airport(s) and a downward effect on the remaining public airport.     

A large neighborhood search heuristic to establish an optimal ad-hoc hubbing strategy in the wake of a large-scale airport outage

Abrupt airport outages can cause diversions and fuel-critical situations for flights, leading to costly passenger misconnections. We develop a large neighborhood search heuristic to optimize the rerouting of flights bound for a disrupted airport to a hub airport that is not disrupted, with the goal of accommodating passengers on existing flights departing the non-disrupted hub. The objective of the heuristic is to identify and reroute flights to the ad-hoc hub(s) – non-disrupted hub airport(s) – that minimize the sum of passenger travel time and wait time. We minimize the passenger cost as the sum of passenger travel time to the diversion airport and wait time for a connecting flight at the ad-hoc hub airport, subject to on-board fuel and diversion airport capacity constraints. We use the heuristic to determine how a coordinated traffic management strategy could have diverted flights immediately following a real-world airport outage.     

Airport choice and flight connectivity among domestic and international passengers – Empirical analysis using passenger movement survey data in Japan

This paper presents an empirical analysis of airport choice and passenger movement on international flights from local cities in Japan to Narita and Haneda Airports in the Tokyo metropolitan area. This is the first study to evaluate airport choice behavior in Japan empirically by using the micro data collected by Japan’s Ministry of Land, Infrastructure, Transport and Tourism in 2010 (i.e., when time slots for international long-haul flights were first assigned at Haneda). The analysis confirms that flight connectivity is a crucial element in airport choice.Further, Japanese airlines and their associated alliances are able to attract passengers arriving from local cities by using Haneda airport. Above all, we find that the introduction of long-haul international flights from Haneda has met the needs of a number of passengers arriving from local cities in Japan owing to the convenience of the domestic flight network, especially for business purpose passengers.     

A study on passengers' airport choice behavior using hybrid choice model: A case study of Seoul metropolitan area,South Korea

Improving explanatory power is significantly important to understand variables that affect attitudes and perceptions in the decision process. This paper estimates not only tangible attributes but also intangible perceptions and attitudes using a hybrid-choice model to study air passengers' flight choice behavior. The empirical study was conducted for the choice behavior of air passengers at Seoul Metropolitan Area, South Korea. The analysis uses a two-level Nested Logit model in order to examine which factors have more effect on passengers’ choice of airport and airline simultaneously by using airport and airline choice attributes. The study also estimated the parameters in the equations relating the latent variable by using Structural Equation Model (SEM). The results indicate that the models with latent variables have improved Goodness-of-Fit when compared to classical discrete choice models and effectively capture psychological factors that affect choice behavior of passengers.     

A systematic approach to assess the effectiveness of airport noise mitigation strategies

Regional airports are often located very close to the urban area they serve and the increasing traffic rate that many of them have experienced in the last years has produced several impacts on the communities living close to the airport area, mainly aviation noise. If not properly managed, noise impacts produced by airport operations can cut down significantly the development of airport air traffic with direct effects on the economic and territorial systems. Aeronautical noise has greatly reduced in the last decade, due to aircraft design technological improvements and more severe regulations. However, the noise reduction during a single event does not make the issue of the airport location – and then the whole noise impact – less significant. This paper proposes an assessment process to evaluate the effects of actions adopted to reduce airport noise impacts on populated areas. Both airport-related factors – such as number of take-off; day-evening-night distributions of movements; aircraft type; flying paths – and land-use characteristics have been considered and combined in a density index that synthesizes the impacts of airport noise on the territory. The assessment process has been tested on a real case, the airport of Bologna in Northern Italy. The predicted results, compared with available real data for the test case, are significant and encourage the use of the proposed assessment process as decision support system for the airport management.     

Is increasing aircraft size common practice of airlines at congested airports?

If the overall demand for air transport grows, but additional airport capacity is not available at congested airports, we could assume that airlines will offer flights with more seats in order to cope with the demand. An analysis of frequency and average seat capacity developments at congested, and not yet congested airports, has shown that the hypothesis of bigger aircraft being used in congested situations is valid in most instances, although not at all airports. The objective of this paper is to report on an analysis of the development of average seat capacity at congested airports, in contrast to the situation at not yet congested airports, and to find out the reasons for airlines increasing the number of seats at congested airports, by means of a statistical model using variables including the degree of airport congestion and average flight distance.     

Assessment of passenger benefits brought about by international airport projects

This study sets forth a method to calculate the passenger benefits of an international airport project and assesses the passenger benefits brought about by two international airport projects.An international airport project mainly increases the number of flights and the possibility of determining convenient timetables. It does not significantly decrease the flight time of international travel. Thus, the user benefits brought about by an international airport project cannot be expressed by the conventional concept of ‘traveling time’, which is the term generally used.In this study, the ‘Expected Value of Traveling Time’ and ‘Expected Value of Generalized Cost’ are presented as indexes to evaluate improvements in convenience brought about by international airport projects. The passenger benefits of two airport projects in Japan are measured by consumer surplus calculated from the demand function using these indexes.These indexes are accurately calculated taking into consideration factors such as scheduling connections between domestic and international transport, and so enable a grasp not only of reductions in flight time, but also of passenger benefits resulting from international airport projects, such as increases in the number of flights and reductions in the time required to make transfers during domestic travel.     

The effects of service quality dimensions and passenger characteristics on passenger's overall satisfaction with an airport

The objective of this paper is twofold. First, to identify service quality dimensions related to airports. Second, to examine the effects of those dimensions on passenger's overall satisfaction with an airport together with variables related to passenger characteristics. Data from an extensive survey applied in a main Brazilian international airport were used. Exploratory factor analysis was applied to extract dimensions of airport service quality as perceived by the passengers. The effects on the overall satisfaction level were estimated using a probabilistic approach. Findings underline implications regarding the use of meaningful service dimensions instead of a large set of variables as predictors of passenger satisfaction. Moreover, the study stresses the need for considering how passenger characteristics may be related to different perceived levels of service quality.     

Passengers perceptions of airport branding strategies: The case of Tom Jobim International Airport – RIOgaleão,Brazil

This study examines the passengers perceptions of Tom Jobim International Airport – RIOgaleão branding strategies and its impact to their experiences in light of the airport branding elements proposed by the literature. To achieve these aims it was conducted a semi-structured interview with the airport's branding manager and a questionnaire with the passengers (n = 92). The findings showed that the airport's new management company has been employing tourist branding strategies using a mix of elements, but it is possible that these actions have had the main objective of raising the airport to international service standards, whereby the operation of terminals by large companies is a trend. It was also concluded that some of the airport branding elements (i.e. logos and slogans) are well developed and represent a higher impact on passenger experience, while others (i.e. retail pricing strategies) require further attention and new approaches in order to improve passenger experience in the terminal.     

International airports: financing methods in Japan

Capacity shortages at international airports in Japan are the most serious impediment to liberalization and free competition in international aviation. Here, we deal with the causes of this shortage, Japanese institutional systems of airport improvement and new financing methods for international airport capacity expansion in metropolitan areas. We emphasize the effectiveness of the joint-stock corporation system as a financial device. The introduction of the joint-stock corporation is one kind of airport privatization, but its characteristics completely differ from those of privatized airports in some European countries and in New Zealand.     

An empirical analysis of airport capacity expansion

Theoretical analyses of the impact of airport capacity expansion must model or make assumptions about the effect of capacity on demand, airline competition, aircraft types, fares and other characteristics of a given airport. In this paper, we use empirical data on historical schedules, fares, delays and demand for the busiest 150 airports in 2015 to examine the typical impact of historical capacity expansions. We find significant diversity in outcomes, with over half the expanded airports either using less than their pre-expansion capacity or remaining constrained even at post-expansion capacity by 2016. Many of the expected impacts, such as reductions in typical aircraft size, either do not materialise or are dominated by other effects (for example, recessions; airlines beginning or ending operations at an airport; changes in regulation). Behaviour on expansion is affected by slot control regulations and whether the airport is initially capacity-constrained. In particular, slot-controlled airports typically add new destinations and carriers on expansion rather than making significant changes to existing schedules.     

Airport privatization with public finances under stress: An analysis of government and investor's motivations

The management model of airports has long stood as a central research area in the transport sector. There are a wide range of studies that focus on the potential benefits and pitfalls of private airport management. The results of these efficiency studies have not provided irrefutable evidence for the superiority of private management over public management, but the momentum towards privatizing airports is growing. The reason for privatization has been more related with privatization revenues for governments, rather than more efficient management. The search for maximizing the sale value can have negative impacts from a welfare perspective, for example, through excessive increases in tariffs for passengers. This research reflects on the motivations for governments to privatize, and is illustrated by a case study – Portugal – in which the privatization occurred as a result of three main large drivers: 1) a bailout programme by the IMF, the EU, and the ECB; 2) a revision of the regulatory model, and; 3) the need to increase the capacity of Lisbon's airport system in the medium term.     

A model to forecast airport-level General Aviation demand

General Aviation (GA) demand forecast plays an important role in aviation management, planning and policy making. The objective of this paper is to develop an airport-level GA demand forecast model. The GA demand at an airport is modeled as a function of social-economic and demographic factors, the availability of supply factors, the competition from the commercial aviation, the number of based aircraft, and the presence of a flight school. Our models suggest that the relative fuel price – fuel price compared with personal income – is a significant determinant of airport level GA demand. The elasticity of itinerant and local GA demand with respect to the relative fuel price is −0.43 and −0.52, respectively. Our results are compared with those reported in other studies. Furthermore, we made projections of GA demand for the airports in the Terminal Area Forecast (TAF) using three fuel price scenarios from the Energy Information Administration. Our projections under the “business-as-usual” fuel price scenario are close to those in the TAF. Our models could prove useful, for example, for the Federal Aviation Administration and airport planners to prepare airport-level GA demand forecast.