Airport efficiency in the dawn of privatization: The case of Greece

Until recently, all airports in Greece were owned and managed by the state; however, the recent economic crisis led the Greek government to privatize 14 regional airports. This paper evaluates the performance of the 38 Greek airports open to civil aviation just before the privatization was concluded. It also aims to highlight that the majority of airports with high efficiency were selected to be privatized. The analysis was performed applying Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI) using 2011 and 2015 operational and financial data. Results showed that, despite the economic crisis, overall efficiency improved between 2011 and 2015, mainly due to the spectacular increase in incoming international passenger traffic. Changes in efficiency can be attributed by and large to exogenous factors such as operations of low-cost carriers and charter operators along with the seasonal operations of established carriers at individual airports. Findings confirm that the majority of high efficiency airports were offered to private investors.     

Evaluating the multi-period operating efficiency of international airports using data envelopment analysis and the Malmquist productivity index

For the most part, airports are publicly or semi-publicly owned and operated with fixed assets. As such, airports have been often considered little more than infrastructure providers for airlines. However, as airports have begun to offer a variety of ancillary services including passenger transfers, re-fueling, parking, and shopping, they no longer play second fiddle to airlines. To come into their own, a growing number of airports realized their need to develop competitive strategies that can attract more air traffic and generate greater revenue. Such strategies start with the assessment of their competitiveness in terms of operating efficiencies relative to others. To help airport authorities identify major drivers for enhancing the airport operational efficiency and the subsequent competitiveness, this paper evaluates the comparative efficiencies of international airports for a multi-year period (2006–2011) using data envelopment analysis intended for dynamic benchmarking and Malmquist productivity index built on time-series analysis. Our study indicates that the productivity of an airport was influenced by exogenous factors such as shifts in government policies and technological advances rather than endogenous factors driven by improvements in managerial practices.     

Evaluating the efficiency of a small hotel chain with a Malmquist productivity index

By applying data envelopment analysis (DEA) a two‐stage procedure is followed to evaluate the determinants of efficiency of a Portuguese public‐owned hotel chain, Enatur for the period 1999 to 2001. In the first stage the paper estimates the Malmquist index and breaks it down into technical efficiency and technological change. In the second stage, a Tobit econometric model, designed to relate efficiency scores, along with other managerial and contextual variables, is used to identify the efficiency drivers. The implications of this study for managerial purposes are then discussed. Copyright © 2005 John Wiley & Sons, Ltd.     

Dynamic carbon emission performance of Chinese airlines: A global Malmquist index analysis

Monitoring the carbon emission performance of Chinese airlines helps inform targeted carbon-reduction policies. This paper proposes a global Malmquist carbon emission performance index (GMCPI), which can measure dynamic changes in total factor carbon emissions performance over time using a production frontier framework. The study then applied the proposed index to evaluate carbon emission performance of 12 Chinese airlines from 2007 to 2013; the study also proposed bootstrapping GMCPI to perform statistical inferences on the GMCPI results. The empirical study generated in three meaningful findings. First, the carbon emission performance of the airlines improved by 11.93%, mainly through technological progress. Second, there were carbon emission performance differences among three different airline types; there was also a convergence of carbon emission performance. Third, the most important factor influencing carbon emission performance was the air routes distribution. Chinese airlines should consider improving carbon emission performance further, by establishing an evaluation system, enhancing communication and coordination among different airlines, adjusting the scale of airline development, and optimizing the air routes distribution.     

Measuring airport service quality: A multidimensional approach

Currently, airports are expected to be operated as self-sufficient service organizations providing efficient and high-quality services to a variety of customers. In this context, improving airport service quality (ASQ) has become paramount. However, due to the complexity of the airport service environment, an effective process of measuring and analyzing passenger perceptions of ASQ is not easily achieved. Generic scales for perceived service quality might not cover some particularities of the passenger–airport interaction. Furthermore, while some measurement practices have been developed within the airport industry, there has been only limited consideration for validity and reliability. These concerns are certainly relevant to avoid misinterpreting passenger perceptions. In view of these concerns, this paper has a twofold objective. First, to fit a measurement model for perceived ASQ built on typical service measures within the airport industry. Second, to test for the model's equivalence across groups of passengers. Sample data from an extensive survey applied at a major Brazilian airport was used for confirmatory factor analysis. The results suggested that a six-factor structure provides a meaningful multi-item measurement model for perceived ASQ. The model was validated for international and domestic departing passengers with respect to its factorial structure and metric invariance. The proposed measurement model could be considered an alternative for a multidimensional approach in the context of airport performance measurement regarding service quality. Finally, the findings from this research might contribute to the discussion on passenger perceptions of ASQ, particularly concerning its multidimensionality and the need to review current practices for ASQ analysis.     

Airport capacity management: A review and bibliometric analysis

Over the past two decades, the aviation sector has seen dramatic growth in demand with limited support in terms of supply, due to under-development of the larger airport infrastructure. This has led to congestion and delays at major airports across the world. The topic of ‘airport capacity management’ (ACM) has thereby attracted considerable scholarly attention. From our review of extant literature, we find an extensive repository of research work related to ACM, vis a vis its inherent role and the expected output. Nevertheless, extant literature has failed to conduct a systematic literature review on ACM in order to understand its evolution over time. Therefore, we analyze ACM literature in detail to grasp and evaluate the work being done thus far, using bibliometric analysis. Our analysis reveals that airport capacity, congestion, competition and ground holding problems are important keywords related to ACM. Further, using co-citation analysis we identify 5 broad clusters and thought pattern of researchers. We also propose a flowchart of literature with major research area related to ACM. Finally, we note that the Journal of Air Transport Management (JATM) with 1086 citations and 109 documents tops the list of journals publishing papers on ACM.     

Airport performance in a tourism receiving country: Evidence from Greece

The aim of this study is to estimate the performance of 38 Greek airports. The analysis is performed in two stages. Firstly, efficiency scores for each airport are estimated using Data Envelopment Analysis (DEA) original and bootstrap techniques. Secondly, statistical assessments (Mann–Whitney U and Kruskal–Wallis tests) and a censored Tobit regression model are employed to identify which factors significantly explain variations in the airport efficiency. The results indicated the scope for substantial efficiency improvements. In addition, island location, connectivity, and hotel infrastructure in the area were found to be significant factors affecting airport efficiency.     

Airport Services and Airport Charging Systems: A Critical Review of The EU Common Framework

This paper reviews proposals contained in the Commission of the European Communities (CEC) Consultation Paper of 1995 and Draft Directive of 1997 on Airport Charges. Economic and practical problems associated with the CEC proposals are highlighted. The main conclusions are that the CEC proposals will be difficult to enforce because they are vague, implementation is left to the individual member states, and because they allow for a variety of approaches to charging systems which can include substantial cross-subsidisation across aeronautical and non-aeronautical uses at one or more airports. The fact that the Commission will not have significant powers of enforcement further reduces the impact which the proposals can have.     

Accessibility gains and road transport infrastructure in Spain: A productivity approach based on the Malmquist index

Accessibility, the relative access to markets, is a strategic concept in all economic models with a spatial dimension and its prominence has been acknowledged in many economic research fields and policy debates. This paper is based on the assumption that infrastructure drives economic accessibility and, therefore, we can assimilate a production function approach where the road network constitutes a set of inputs yielding access to markets as output. Methodologically, we originally measure the infrastructure inputs accounting for the real used network and calculate a series of new final and intermediate demand gravity-based and locational indicators, which capture a wide range of economic transactions and represent different concepts of economic accessibility outputs. The value added of this paper is translating a non-parametric frontier approach (DEA) to a dynamic scope (Malmquist indices) by connecting the regional accessibility to the productivity of the road infrastructure inputs associated with each region. Results during 1995–2005 show a low relative accessibility of the Spanish NUTS-3 regions, although improvements have been greater over the last five years. Finally, we observe a U-inverted relationship between the accessibility gains during these years and the geographical localization.     

A fuzzy assessment method to airport waste management: A case study of Congonhas Airport,Brazil

This study presents a fuzzy mathematical model to support and evaluate airport waste management. The model generates a waste management index, composed of three dimensions, and it was applied in a case study of Congonhas Airport, located in Brazil. In addition to the mathematical model, the nonparametric Mann-Kendall test was applied to verify the existence of bias in the obtained results. The results showed that there is a concern on the part of the airport regarding waste management, reflected in the Fuzzy Waste Management Index (FWMI) results. They also indicated that there was an improvement in waste management in 2015 compared to 2014, resulting from increased accounting for recyclables and awareness of the airport community. The developed model proved to be an important tool to support the decision making of airport managers, including aspects related to waste management steps, and there may be adjustments that may be made to include new indicators.     

Total factor productivity analysis of the UK airport industry: A Hicks-Moorsteen index method

This study examines the total factor productivity (TFP) change of the UK airport industry from 2001 to 2009 using a Hicks-Moorsteen index method. The results show that the industry experienced an average annual growth in TFP of 0.32 per cent with efficiency change being the main contributor to the TFP growth. We find that private UK airports enjoy slightly higher TFP growth than those in public or mixed ownership. Regulation and airport size are found to have statistically significant effects on the airport productivity level.     

Effects of non-aeronautical activities at airports on the public transport access system: A case study of Zurich Airport

Many planning authorities and airports study measures to increase public transport use for airport ground access and egress. At the same time, an increase in real estate development at and around airports is occurring, both due to airports seeking new revenue possibilities and other developers attempting to profit from high value locations. This paper considers non-aeronautical activities at large airports, largely commercial centres and transit hubs, as land uses that have the potential to improve the situation for operating public transport services. In order to assess potential benefits and disadvantages, four research questions are considered: (1) Can the additional travel volume reach levels at which it has a significant impact? (2) To what extent do non-aeronautical activities influence the public transport access system? (3) Is the resulting demand distribution better or worse regarding peaking behaviour? (4) Is there a potential for the resulting overall demand to bring about capacity shortages?A case study is conducted at the airport of Zurich, Switzerland, which finds that non-aeronautical activities in the direct airport vicinity have led to a situation where the operation of public transport services is much more viable due to overall higher passenger numbers and a more even distribution throughout the day. It is concluded that locating non-aeronautical activities at airports can, in addition to providing commercial benefits to developers, lead to a situation where improved public transport services become feasible.     

A complex network approach towards modeling and analysis of the Australian Airport Network

An airport network forms the backbone of any air transportation system. The relationships among the origins and destinations of flights result in a complex network of routes which can be complemented with information associated with the routes themselves, for instance, traffic load and distance. In this paper, we modeled the Australia's civil domestic airport infrastructure as a network and analyzed the resulting network structure and its features using complex network tool. This case study identifies and investigates complex network measures, such as the degree distribution, characteristics path length, clustering coefficient and centrality measure as well as the correlations among them to understand the topology of an airport network. This analysis of the Australian Airport Network (AAN) indicates that it has a cumulative degree distribution described by the power-law function. As it has an average path length of 2.90, it is considered to have small-world properties. It is also found that it has a clustering coefficient of 0.50 which is higher than that of a random network of the same size which indicates that the transitivity and cohesiveness of AAN is different from a random network. In contrast to the World-wide Airport Network (WAN), the AAN is found to have disassortative mixing similar to the airport networks of China and India.     

Airport selection criteria of low-cost carriers: A fuzzy analytical hierarchy process

The selection of airport is an important consideration for low-cost carriers (LCCs) to remain cost competitive. The objective of this study is to identify and rank the airport selection criteria of LCCs. Based on reviewing the existing literature, five main factors comprising 16 sub-factors were developed. The factors were first validated by three industry experts from the aviation industry. Thereafter, a survey questionnaire requiring a comparison of the factors was administered on 28 executives who were involved in the strategy planning and formulation of LCCs based in China or Korea. The collected data were analysed using fuzzy analytical hierarchy process (FAHP). In descending order of their importance, the main factors influencing LCCs' selection of airport are (1) airport charges, (2) airport performance, (3) airport growth opportunities, (4) catchment area and (5) airport infrastructure. The top three sub-factors are airport costs, demand for LCC services and passenger throughput. The research contributes to academic research by providing a holistic assessment of the key considerations influencing LCCs' selection of airport. In addition, it implicates policy formulation of LCCs by providing a framework for assessment of airports that are suitable for LCCs’ operations.     

Sustainable airport development with performance evaluation forecasts: A case study of 12 Asian airports

This study evaluates airport performance from 2014 to 2021 with actual and forecasted data to help plan airport sustainability and establish sustainable airport development strategies. Eight Chinese airports (PEK, PVG, CAN, SZX, SHA, XMN, HAK, and HKG) and four representative Asian airports (HND, ICN, SIN, and DEL) are studied. Airport performance is evaluated from the process level (i.e. operational processes providing aeronautical service and financial processes providing commercial service) to the airport level using the Network DEA with actual and forecasted data from the grey model. Results indicate that HKG has been and will be efficient for the entire study period. There is an observed trend of an overall efficiency decrease during the forecast period of 2018–2021. This study classifies operationally efficient airports (PEK, HND, and XMN) and financially efficient airports (HAK, ICN, and DEL). Mainland Chinese airports show significantly higher operational efficiency than financial efficiency, and lower rankings in overall efficiency. It is expected that mainland Chinese airports will soon develop beyond the transportation center, possibly towards the aerotropolis, balancing economic, social, and environmental aspects for sustainable development. This study helps airport management to evaluate sustainable development strategies by assessing current and near future conditions affecting sustainability.     

Multi-period efficiency and productivity changes in US domestic airlines

This study tracked the static efficiency and dynamic productivity changes of 14 US airlines from 2006 to 2015. Moreover, we estimated the principal economic drivers of the environmental variables to increase the US domestic airlines' efficiency using the double bootstrap regression analysis. The major aspects of this study are as follows: First, network legacy carriers have the highest efficiency, whereas low-cost carriers are lowest. Nonetheless, network legacy carriers still have room to improve scale inefficiency. Second, the fluctuations in technical change, rather than in efficiency change, tended to have greater effect on the fluctuation of Malmquist productivity index for US domestic airlines. Third, M&A between US airlines have both positive and negative effects in terms of efficiency and economies of scale. Fourth, cost environmental factors have a negative effect on US airlines' efficiency, while revenue factor is a positive effect. The results of this study may help US airline industry practitioners to understand the US domestic airline environment from an operator's perspective.     

Airport ownership and regulation in Spain: Explaining the resistance to change

This paper presents the case of Spain where the government recently decided to float 49% of the capital of the public agency in charge of the airport system but to keep the public control over airports. The research question is why did a conservative government prefer to keep a unified hierarchical public structure at the time it was starting to be perceived as an outmoded model? To answer this question we propose five hypothesis taken from political science and policy process theories and we confirm that ideas and beliefs within the policy subsystem together with the external shock of the 2008 economic crisis played a role in favor of policy change. However, core values of statewide political parties and political interests with regard to avoid higher territorial decentralization explain the policy reversal. Empirical results are based on the views of political and economic actors, both in favor and against the status quo, with regard to the propositions expressed in the hypothesis.     

Service quality of airports' food and beverage retailers. A fuzzy approach

Nowadays the profitability of airports is largely based on non-aeronautical or commercial activities, and particularly on retail and food and beverage services. Further, researchers concur that shopping, eating and drinking in airports have to be considered an important part of tourists' experience and activities that can significantly enhance or damage the tourist destination image. Despite this, there is still little research that analyses how service quality (SQ) is perceived by passengers consuming food and beverages (F&B) in airport areas. This study aims to deepen the scientific debate on this topic. Specifically, this study applies fuzzy numbers with a sample of 551 passengers flying from Olbia-Costa Smeralda Airport (Sardinia Region, Italy) with the aim of determining how they perceive the SQ delivered by F&B retailers and whether age plays a determinant role in segmentation. Findings reveal which F&B features outperform others; furthermore, they show that age is a moderating factor in consumer satisfaction, with older passengers being less satisfied than their counterparts. This study adds knowledge to the literature devoted to SQ, applying a fuzzy number approach to the under-investigated research area related to F&B consumption in airport areas. Further, it provides information useful to airport managers on the features of F&B services that are most important in shaping consumer satisfaction, based also on their age. Limitations of the study are also discussed and suggestions for future research are given.     

Benchmarking the noise-oriented efficiency of major European airports: A directional distance function approach

The EU Environmental Noise Directive (END) requires member states to produce noise action plans for all major airports every five years. Using that data, this paper employs a directional distance function approach to estimate noise-oriented efficiency of 60 European airports between 2006 and 2011. Technical change is calculated using the Malmquist productivity index. The results indicate that European airports have improved their noise efficiency between 2006 and 2011, and some degree of convergence in noise performance across countries is seen. Larger aircraft size is linked to better noise performance. Inefficient airports would also benefit from more stringent night movement limits.     

Airport operations and security screening: An examination of social justice

Airports are a crucial part of the United States transportation system and airport officials are continuously challenged to ensure that their operations are secure. A major part of providing airport security is implementing check points where passengers interface with the security screening system. The airlines and airport security administration receive negative publicity when passengers are mistreated at security check points. Further, these organizations spend a lot of time to assess the situation and take corrective actions. This study examines passenger perceived bias and the airport security screening system. Using data from a randomly selected sample of 145 airline passengers, six hypotheses are tested. The hypotheses exam the predictive relationships of control procedures, security personnel training, security personnel professionalism, and security screening systems on passenger perceived bias. Multiple regression analysis is used to test the hypotheses. The research findings indicate that security personnel professionalism is negatively and significantly related to passenger perceived bias. Also, security personnel training and security control procedures are positively and significantly related to security personnel professionalism. Management implications, limitations, and recommendations for future research are offered.