Measuring connectivity in the air freight industry

In this paper, we present an air transport connectivity model for air freight. For the purposes of this paper, connectivity is defined as all possible direct and indirect connections to or from an airport operated by wide-body aircraft, weighted for the quality of the connection in terms of transhipment and in-flight times. Using this model, we analyse the networks of seven European airports. Europe’s largest hub airports carry most air freight thanks to their extensive intercontinental passenger networks, while smaller airports with a strong focus on air freight carry large amounts of cargo on dedicated freighter aircraft. For air freight operations, the catchment area of an airport is much larger than it is for passenger services, as shipments are being trucked to their departure airport throughout all of mainland Europe. Since there are many airports sharing the same catchment area, potential competition for air freight is fierce. We found that well located regions between the four large European airports have access to large air freight networks, whilst regional air freight connectivity in northern and southern parts of Europe is substantially lower.     

Competition and efficiency in the Italian airport system: new insights from a conditional nonparametric frontier analysis

We analyse the effect of competition on technical efficiency of Italian airports by applying a novel conditional nonparametric frontier analysis for the first time to the airport industry. We find that competition affects mostly the frontier of best performers, whilst airports that are lagging behind are less influenced. A novel two stage approach shows that, on average, competition has a negative impact on technical efficiency. We estimate a measure of pure efficiency, whitened from the main effect of the competition, whose distribution has a bi-modal shape, indicating the existence of two differently managed groups of airports.     

Improving US airport taxicab services through governance arrangements

Most airports internationally have implemented customer satisfaction programs into their operations to increase non-aeronautical revenues. In the US, taxicabs are an essential airport transport mode given the limited public transport options available. Effective airport taxicab planning efforts can increase airport customer satisfaction levels, as well as facilitate handling increased airport passenger volumes. However, little is known on how US airports have adapted their governance practices from a traditional hierarchical to a network approach in their efforts to undertake airport taxicab planning initiatives since the deregulation of the transportation industry. Data acquired from 51 US hub airports is used to examine their existing taxicab planning practices. The findings offer how US airports can modify governance processes in their airport taxicab planning processes to better support increases in the customer satisfaction levels of airport taxicab patrons.     

Operational performance evaluation of international major airports: An application of data envelopment analysis

This paper uses data envelopment analysis to assess the operational performance of 20 major airports around the world. It is found that the form of ownership and the size of an airport are not apparently correlated with operational performance of airports. In contrast, the existence of a hub airport, the location of the airport, and the economic growth rate of the country in which the airport is located are all related to the operational performance of airports. The 20 airports are put into four groups according to their efficiency values.     

Airport and route classification by modelling flight delay propagation

Flight delay can be divided into the root and propagated delays for identification and analysis of airports/routes that have a great influence on actual flight delay using flight operations raw data (tower logs) for South Korean domestic flights. In addition, the presented concept of “generated delay” classifies airports as affecting other airport delays or affected by other airport delays. The generated delay refers to the delay time at a particular airport/route, and this delay thereafter actually propagates to other airports/routes. In this study, the generated and propagated delays were displayed on a two-dimensional graph, and the airports/routes were grouped according to delay characteristics. Group A represented airports with high generated and propagated delays, and group B represented airports that are highly affected by delays of preceding airports/routes. Group C represents airports where newly formed delays affect other airport delays, but these airports mitigate delays from other airports. Airports in group D have relatively low delays and propagation. Thus, we targeted airports belonging to groups A and C because of their delay propagation impact on other routes/airports, which must be reduced by decreasing the root delay from targeted routes/airports. Among the airports, Jeju international airport (CJU) had the highest average delay time and propagated flight delay time with similar averaged generated delay times. Among the routes, departure flights from various airports to CJU had significant propagation effects on the subsequent flights. CJU and related routes have a very large impact on domestic flight delays because South Korean domestic airline routes are concentrated on CJU. However, there has been no quantitative analysis, and it is meaningful that the quantitative analysis results were presented in this study. In addition, we suggest that other airports such as GMP (Gimpo), CJJ (Cheongju), WJU (Wonju), and KUV (Gunsan) have a significant impact on domestic flight delays.     

Understanding air travellers' trade-offs between connecting flights and surface access characteristics

This paper reports on a study which seeks to improve our understanding of how people choose between different kinds of flight at competing airports, and how their choices are affected by access conditions. In particular, using stated choice data collected in Scotland, it investigates whether improving surface access to regional airports that are in relatively close proximity to one another (Glasgow and Edinburgh) leads people to avoid taking indirect flights from their nearest airport in favour of direct flights from an alternative airport. In line with expectations, our estimation results from Cross-Nested Logit models show strong aversion to connecting flights, resulting in a willingness to either pay higher fares for direct flights or accept non-trivial increases in access time. For the latter, even without the potential new direct rail link between the two airports, current access times are such that a scenario where direct flights were only available at the non-home airport, a substantial share of passengers would choose to travel from the alternative airport.     

Passengers' airport choice and airports' catchment area analysis in cross-border Upper Adriatic multi-airport region

Although much research has been performed on passengers' origin airport choice, there is little research on airports' catchment area size and even less on airports' catchment areas in cross-border regions. This paper addresses passengers' airport choice and analyzes airports' catchment area size and its homogeneity in the Upper Adriatic region. Using the results of passengers' survey at three regional airports (Ljubljana Jože Pučnik Airport (LJU), Venice Marco Polo Airport (VCE) and Trieste Pietro Savorgnan di Brazza Airport (TRS)) we have estimated the airports' catchment areas and airports market shares therein using multinomial logit (MNL) model structure. To additionally explore the passengers' airport choice behavior considering the different sensitivity across travellers to regional, demographic and airports attributes and account for preference heterogeneity in airport choice a mixed logit model was used. The results indicated that the three airports have relatively small core catchment areas and that the market share rapidly decreases with the increasing access time to airport. Partially, the results reinforced earlier findings showing that access time to airport is the most important determinant in airport choice for all segments (business/leisure and cross-border/domestic), however the sensitivity to access time is more pronounced in business and domestic group. Additionally, the results indicated pronounced loyalty to domestic airports and generally low importance of ticket prices, and show that in market conditions where all airports in the region have a low-cost carrier (LCC) the effect of LCC on airport choice is limited. Finally, the results indicated that the borders might have an influence on airport choice and that overall, in the cross-border regions the passengers’ airport choice process is even more complex than in non cross-border regions.     

Marketing innovation: Sources,capabilities and consequences at airports in Europe's peripheral areas

This paper investigates sources, capabilities and consequences of marketing innovation at airports in Europe's peripheral areas. A questionnaire-based survey was administered to airport managers. Ten sources of airport marketing innovation are identified. Innovation is significantly higher at airports that are administered as an independent entity compared to airports that are administered as part of a regional or national airport system. Large airports have a significantly higher level of innovation compared to small airports. Innovation has a significant positive effect on airport marketing performance, irrespective of the strategic focus of the airport.     

Modelling the effects of capacity constraints on air travellers’ airport choice

This paper analyses the effects of limited capacity on air travellers’ airport choice. The analysis is based on a market-segment specific airport choice model that accounts for limited capacities. The region of Stuttgart in Germany serves as a case study to examine the impact of limited airport capacity on air travellers’ airport choice. Air travellers’ choice depends on the supply of flights and accessibility of the airports in their choice set as well as on their preferences and willingness-to-pay. To elaborate the effects of limited airport capacity, scenarios relating to the capacity situation at airports serving the air travel demand of the Stuttgart region are analysed. This paper reveals the mutual dependence among airports. Capacity constraints at one airport cause spill-over effects and thus influence air travel demand served at other airports. In some cases this may even lead to new capacity constraints elsewhere.     

Intermodal integration in air transportation: status quo, motives and future developments

Soaring air traffic, increasing urban expansion and airports operating at full capacity are reasons that have caused a discussion about improvements in airport landside access systems. One approach to better match customer demands and address airport congestion is to facilitate the intermodal integration of airports. Building on a survey on intermodal passenger air transportation, we elaborate on the current and future situation at major airports. Our findings indicate a high modal concentration and dependence on individual access modes. However, while airport managers intend to reduce the share of these modes, they plan to increase that of high-occupancy airport access modes. We analyze the underlying motives that cause airports to extend their connections to surface infrastructure. In a case study, we assess an intermodal best practice solution for the integration of air and rail.     

Measuring airport quality from the airlines’ viewpoint: an application of data envelopment analysis

The main objective of this paper is to develop a model to determine the relative efficiency and quality of airports. This factor seems to have a strong effect on the airlines’ choice of hubs. Previous studies of airport quality have used subjective passenger data whereas in this study airport quality is defined from the airlines’ viewpoint. Accordingly, we have solicited airlines’ evaluations of a number of European and non-European airports by means of a detailed questionnaire. Statistical analysis of the median score has shown that these evaluations vary considerably relative to quality factors and airports. The key methodology used in this study to determine the relative quality level of the airports is Data Envelopment Analysis (DEA), which has been adapted through the use of principle component analysis. Of the set of West-European airports analyzed, Geneva, Milan and Munich received uniformly high, relative efficiency scores. In contrast, Charles de Gaulle, Athens and Manchester consistently appear low in the rankings.     

Relevance of airport accessibility and airport competition

Airport accessibility is an important criterion for airport competition. The relevance of airport accessibility and airport competition was studied in this paper based on the panel data collected from nine large airports in Jiangsu province, China from 2005 to 2014. The results showed that the cost of expense, time and fatigue for the arrival at the airport are proposed to quantify levels of fastness, economy and amenity for the passengers to arrive at airport. The airport accessibility is significantly affected by airport passenger traffic and airline frequency. The passenger traffic can be increased by 2% with 1% increase of airport accessibility based on the analysis results of the nine large airports in Jiangsu province.     

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.     

Supply-and-demand models for exploring relationships between smaller airports and neighboring hub airports in the U.S.

Airport passenger leakage is the phenomenon of air passengers choosing to travel longer distances to access more extensive air services offered by airlines at an out-of-region hub (or, substitute) airport, instead of using their local airports. Airport leakage can cause further reduction in services offered by airlines at a local airport, thereby causing even further leakage, and so on, which can significantly impact an airport's role in the growth of the local economy. This paper explores the geographic and operational attributes of local-and-substitute airport pairs in the United States, explicitly accounting for the interactive feedback relationship between passenger volumes and air service characteristics that contribute to the onset, persistence, and exacerbation of airport passenger leakage. A two-stage least squares regression model of air passenger demand at small- and medium-sized airports is first presented, where local passengers may travel by vehicle to larger, out-of-region hub airports. The results confirm that airfare and passenger volume relationships exist between the local and substitute airport pairs included in the dataset, and that lower airfares at the substitute airport have a greater impact on airport choices made by larger travel groups. They also suggest the existence of positive feedback in that if an airport attracts increasingly smaller passenger numbers with fewer air services and fewer air services with fewer passengers, without external intervention airport leakage impacts may be irreversible and exacerbate over time. A conceptual market share equilibrium analysis is used to illustrate the mechanisms of a direct two-way feedback relationship between passenger volumes at a local airport and air service characteristics at both the local and substitute airports. With data, this quantitative framework can help guide airport planners in further assessing and verifying suspected passenger leakage issues at their airport. The results suggest that without intervention, airport leakage impacts may be difficult to reverse; further exacerbating the trend are technological advancements that make driving cheaper and easier (connected and autonomous vehicles). However, the results can also guide planners in choosing the types and degrees of infrastructure investments and airline incentives that may be used to expand or retain air services to attract passengers.     

Performance assessment of UK airports: Evidence from a Bayesian dynamic frontier model

This paper analyzes the cost efficiency of UK airports over the period 1998-2008, using a Bayesian dynamic frontier model. This model provides a more structural explanation for the variation in airports inefficiency than has been presented by previous models, and also allows for cost inefficiency effects. On average, the dynamic frontier results, estimated via the Markov Chain Monte-Carlo simulation, indicate that UK airports improved their efficiency over time. Factors found to be important determinants of cost efficiency include airport size, price regulation, price cap variations and airport competition. Policy implications of the results are derived.     

Airport–airline vertical relationships,their effects and regulatory policy implications

This paper examines the forms and effects of vertical relationships between airports and airlines with a focus on the North American and European aviation markets. We find that such vertical relationships enables those participating to achieve various benefits and may be formed as a competitive response to other competing airport–airline alliances. In some cases, vertical airport–airline relationships strengthen the hub status of major airports, leading to increased employment and service quality in local markets. On the other hand, preferential treatment of a particular airline by an airport may enhance that airline’s market power, allowing it to dominate the airport and charge hub premiums. The competition and welfare implications of airport–airline vertical alliances can be complicated and two-sided, subject to the influences of other factors such as the market structures of the airline and airport markets.     

The Italian airport industry in transition: a performance analysis

This paper analyzes the impacts of Italian government actions on the efficiency of 36 airports between 2001 and 2003. The changes have included privatization, enlargement of the services provided directly by airport management companies, through the modification of the concession agreements, and the creation of two hubs. The analysis, using the consolidated two-stage data envelopment analysis with bootstrapping, indicates that airports with a majority public holding are on average more efficient and the presence of two hubs is source of inefficiency.     

Car parking management at airports: A special case?

The number of employees who daily commute to an airport represents, on average, one quarter to one half of the daily number of passengers. At UK airports it is rare for employees to pay for their car parking, with most employers absorbing the charges imposed by the airport authority. This paper details the main issues with offering free parking to employees drawing comparisons between a selection of case studies where parking management measures for employees have been introduced, and the airport sector. The paper then reports on a survey and a series of focus groups that were conducted with employees at a large UK airport in order to gauge their attitudes and likely behavioural responses to potential parking management strategies. Key findings are presented to show how airports may be able to learn from the experiences of others in the successful introduction of parking management strategies, but that there are also key barriers that are specific to airports that would need to be overcome.     

An application of the airport service quality model in South Africa

Passengers’ expectations of service quality at airports are becoming increasingly important as air traffic grows. This research investigated passengers’ perceptions of airport service quality at O.R. Tambo International Airport, South Africa. An existing model placing the concept of passenger expectations central to measuring an airport’s specific level of performance was applied. The results proved significant in terms of the investment made by the airport in staff training and highlighted areas for improvement. The results show that business travellers and leisure travellers have different opinions regarding the importance of services offered by airports and of the level of performance at ORTIA in particular. Significant differences also occur in the perceptions of frequent travellers and infrequent travellers.     

Airport–airline interaction: the impact of low-cost carriers on two European airports

This paper uses case studies to look at the impact of low-cost airlines on two European airports. Low-cost airlines continue to exert an influence in air transport markets and small airports face pressures to compete for their business. The low-cost model motivates airlines to negotiate contracts that significantly reduce aeronautical revenues, leaving airports to compensate by seeking commercial revenues from the increase in passengers. This has consequences for the airports, their passengers and the relationship between the airport and its existing operators. It is found that it is important for airport management to see both passengers and airlines as customers and to understand the resultant revenue streams, before negotiating preferential contracts with low-cost carriers.