Minimum delay or maximum efficiency? Rising productivity of available capacity at airports: Review of current practice and future needs

Around the world airports are facing capacity constraints more and more everyday, generally the runway capacities are restricted by governments and airports are unable to accept additional aircrafts. Technological improvements can decrease the necessity of policy limitations in terms of noise and air pollution. Rapidly increasing numbers of traffic developed severe scarce capacity, congestion and delay problems and the capacity that is available, needs to be allocated as efficiently as possible. Airport capacity can be allocated in different ways; administrative capacity management with slot allocation and traffic distribution rules; market-based capacity management with slot auctioning, secondary trading and peak pricing; a combination of both mechanisms; and no regulation mechanism as applied in the USA with the exceptions of busiest airports. The review contains the analysis of current state of practice and the review of relevant research on capacity and slot allocation modelling with policy and demand management perspectives. It targets identification of existing problems, inefficiencies, gaps and requirements in current practice of slot allocation mechanisms, defining options for change in policies to allocate slots more efficiently, transparent and fair by investigating market-based mechanisms. The objective of this paper is to contribute to the ongoing research for improvements to the slot allocation process that can be rationally implemented in practice in order to improve efficiency, fairness and transparency. For that purpose, based on these slot allocation approaches, we provide a critical review of status-quo, literature and current research with demand and congestion management perspectives by considering overall social welfare, airline and airport surplus, passenger welfare and explore hypothetical, computational and practical challenges that have arisen from cross-disciplinary methodologies.     

Hub airport slot Re-allocation and subsidy policy to speed up air traffic recovery amid COVID-19 pandemic --- case on the Chinese airline market

With international air travels largely banned around the world amid the global COVID-19 pandemic, many gateway and hub airports have more ideal slots available for reallocation. Airport traffic recovery replaces airport congestion to become the primary challenge of major airports around the world. With the pandemic well controlled domestically in China, the government liberalizes the hub airport slots for those previously forbidden services to the small/regional airports. This paper thus analytically examines the effect of this slot liberalization. The government subsidy to the small airports has also been considered. It is found that the slot liberalization can speed up airport traffic recovery for both hub and small airports. The hub airport slot liberalization leads to a lower level of minimum subsidy to sustain the survival of the small airports. Given any fixed level of subsidy to the small airport, both the total airport traffic and social welfare would improve with the slot liberalization at the hub airport. When the government can adjust the level of subsidy after liberalizing the hub airport slots, the subsidy could be excessive, if the government emphasizes too much on airport traffic recovery. This would, however, harm the overall social welfare.     

An integrated performance evaluation approach for the Indian international airports

This paper deals with the applications of best worst method (BWM) and multi-attributive border approximation area comparison (MABAC) method to assess the performance of 32 major Indian international airports based on eight evaluation criteria. The BWM is applied to derive the criteria weights based on the opinions of four decision makers, while MABAC method is employed to rank the considered airports from the best to the worst along with the identification of their relative strengths and weaknesses. The advantages of these methodologies are also enumerated. It is observed that annual revenue is the most important evaluation criterion, followed by the total number of passengers. Based on this integrated analysis, Indira Gandhi International Airport and Surat International Airport respectively emerge out as the best and the worst performing international airports in India.     

Business aviation in Germany: An empirical and model-based analysis

The primary role of large airports is to serve the general public with scheduled and charter air transport services, with a secondary role of providing direct air transport access to regional industry and to firms who operate their own fleets of aircraft. Because of the complexity of slot allocation procedures and increasing runway capacity problems at airports, there is a growing problem in realising this secondary function. Neighbouring regional airports could play a complementary role and cope with some of this growth in traffic. Here we quantify the distribution of growing business aviation demand between airports to explore potential ways of accommodating it at both major and nearby secondary facilities.     

Comparing efficiency of holding business model and individual management model of airports

This research compares the efficiency of holding business model to individual management model of airports, employing some robust non-parametric partial frontier-based methods to compare the statistical distributions of efficiency, under different scenarios, to find out which group of airports yields better global performance. The comparison between groups will follow a Malmquist index decomposition, which seems to be the most appropriate tool for within- and inter-group performance comparison. For this purpose, a sample of 145 airports from three continents is utilized. The results provide evidence that European airports are the most productive ones, and within this cluster, the individual management model presented a significant frontier shift with respect the holding cluster frontier, meaning that the former is much more productive than the latter.     

Comparative analysis of efficiency for major Southeast Asia airports: A two-stage approach

Within the past few years, the economy of Southeast Asia has been expanding rapidly with the rise in demand for air transport services. International airports are important driving forces for Southeast Asia countries' economies. Therefore, the competitive ability of these airports is very essential in terms of development and competitiveness within the region. This paper investigates the capabilities of these airports by a two-stage approach. The strengths and weaknesses of each Southeast Asia airport are evaluated by Data Envelopment Analysis – Slack-Based Measurement (DEA-SBM) in the first stage. This is a non-parametric approach to measure the efficiency of 9 major airports in the area including Changi Airport (Singapore), Suvarnabhumi Airport (Thailand), Kuala Lumpur Airport (Malaysia), Soekarno Hatta Airport (Indonesia), Ninoy Aquino Airport (the Philippines), Noi Bai Airport, Tan Son Nhat Airport (Vietnam) and Guangzhou Baiyun Airport (China), Hong Kong Airport (Hong Kong). In the second stage, Tobit regression is used to estimate the influence of multiple factors toward the efficiency of each airport. By generalizing and comparing two stages, the analysis allows us to evaluate each airport's efficiency in seven years, as well as the impact of multiple factors in one airport's performance. The implications for improvement are also obtained and discussed.     

A tool to support resource allocation at small-to-medium seasonal airports

During a few months of the year seasonal airports face the challenging task of maintaining service quality while dealing with heavy traffic, often being pushed to operate on the limit of their available capacity. Under such circumstances, efficient allocation and timely reallocation of physical and human resources is what keeps the service quality of airports at an acceptable level.The paper describes a tool to support allocation of the physical resources, developed for particular seasonal airport falling in the range 1–5 million annual passengers. The tool is designed to work with the traffic schedule – to check it against existing constraints imposed by area, and to assign the appropriate alert if any of the constraints are violated. Thus, the tool provides airport planners with a clear overview of the traffic situation. Its main function is to allow airport planners to check the effects of different actions to resolve particular constraints violations on the overall situation, before making the final decision. Due to non-disclosure agreement, the tool and its features are presented in the paper on somewhat modified example.     

Changes in land use typology of global airports: An empirical investigation with implications for the aerotropolis concept

Aerotropolis is an urban development concept characterised by the concentration of land uses fostering economic activities around airports. However, limited empirical evidence exists about the formation of aerotropolises and their effects on the productivity of airports. This study addresses the gaps by examining changes in land use patterns around 75 major airports globally, using data extracted from Google Earth for two time periods: 2004 and 2014. A Two-Step cluster analysis technique was applied to identify natural groupings of the airports in terms of their land use patterns for both periods. Changes in cluster membership were observed between the periods to examine the process of aerotropolis formation. A multivariate multiple linear regression (MMLR) model is estimated to identify factors contributing to aerotropolis formation process. Finally, the effects of the aerotropolis formation process on airport productivity is estimated in a two-stage least square (2SLS) regression model. Cluster analysis results show that airport land side development can be classified into three groups: Island airports (surrounded by largely vacant land), Waterfront airports (adjacent to a large body of water), and Built form airports (well-developed residential, commercial and industrial land uses). Overall, built-up areas increased by 2.1% between 2004 and 2014, and only three airports transitioned from Island to Built form – suggesting a weak evidence of the aerotropolis formation process. Developable land surrounding the airports and city population growth rate contributed significantly to this process, which consequently contributed to the productivity of airports. In conclusion, aerotropolises are a promising concept, yet unreal. It needs to be integrated with city plans to direct development, and thereby, to make it a reality.     

Regional aviation and economic growth: cointegration and causality analysis in Australia

Air transport is a critical link to regional, rural and remote communities in Australia. Air services provide important economic and social benefits but very little research has been done on assessing the value of regional aviation. This research provides the first empirical evidence that there is short and long run causality between regional aviation and economic growth. The authors analysed 88 regional airports in Australia over a period of 1985–86 to 2010–11 to determine the catalytic impacts of regional air transport on regional economic growth. The analysis was conducted using annual data related to total airport passenger movements – for the level of airport activity, and real aggregate taxable income – to represent economic growth. A significant bi-directional relationship was established: airports have an impact on regional economic growth and the economy directly impacts regional air transport. The economic significance of regional air transport confirms the importance of the airport as infrastructure for regional councils and the need for them to maintain and develop local airports. Funding should be targeted at airports directly to support regional development.     

An analysis for the competitive strength of Asian major airports

This paper presents an analysis of the competitive status of major airports in the East Asia region. The analysis assesses these airports based on five factors: service, demand, managerial, facility, and spatial qualities. In order to analyze the competitive status of the selected airports, this study has applied a multi-decision criteria approach and is based on a comparison of qualitative data. The competitive status of each airport can be categorized as one of the following levels: most, more, less, or least competitive.     

Brazilian airport economics from a geographical perspective

This paper discusses the revenue and expenditure functions of a sample of Brazil’s airports administered by Infraero, the Brazilian State enterprise responsible for administering the country’s major airports. It aims to identify what volume of movement at the airports associates with positive net earnings, i.e., the break-even point between revenue and expenditure, in view of aspects of airport movement and geographical factors. It examines airports serving regular airlines and with movement of up to 8 million passengers in 2010. Revenues and expenditures are explained by total passengers embarked and disembarked at each airport and by the potential of the airport’s ‘anchor city’. Multiple regression analysis achieved a high level of explanation for the dependent variables studied, i.e., revenues and expenditures. The model explains 81% and 91% of the variations in revenues and expenditures, respectively. The analysis shows that, considering the ranking of cities, Brazilian airports with less than 2 million passengers tend to operate at a financial loss, those with between 2 and 3 million passengers are at the transition stage between positive and negative earnings, while airports with more than 3 million passengers tend to make gains. However, the simulation modelling shows that the break-even point between expenditure and revenue functions can vary considerably when different ‘city potentials’ are considered. In this respect, the modelling offers investors a tool for analyzing passenger demand risk in the light of expectations for Brazilian cities’ potential.     

Determinants of flight delays at East Asian airports from an airport,route and network perspective

Previous studies on determinants of flight delays have been limited to the attributes of departure and arrival airports and routes and experiences in North America and Europe. This research extends the existing discussions by considering a network perspective to explore East Asian airports. A total of 4611 routes among 318 airports in the second half of 2017 are analyzed using panel data regressions. Results show that the attributes of airports and routes linked with the departure and arrival airports of a flight are the essential determinants of flight delays in East Asia. However, the congestion internalization and hubness effect of departure and arrival airports suggested in previous research are not observed in this region. The associations of slot control levels and route attributes with delays are varying between airports inside and outside China and domestic and international routes. This research supplements a new perspective to understand the determinants of flight delays in existing literature and provides a rarely observed knowledge to encourage East Asian airport operators and carriers developing management strategies for minimizing flight delays.     

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.     

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.     

Spanish airports performance and efficiency benchmark. A PESA-AGB study

This study uses a MCDA tool to analyse and improve Spanish airports performance and efficiency. Thus, a holistic study using MACBETH (with PESA-AGB) is used. This study has never been applied before in Spanish airports. Firstly, a literature review related to this study keywords is conducted, as well as about benchmarking concept applied specifically to airports. Secondly, several methodologies in used to benchmark airports are reviewed and compared. Thirdly, airport performance and efficiency issues are addressed and described. Finally, the MCDA-MACBETH (with PESA-AGB) tool is applied to 4 Spanish airports.Spanish airports belonging to AENA transported 263, 753, 406 passengers in 2018 with an increase compared to 2017 of 5.8%. General data enables to conclude that.Spanish air transportation system is growing annually and hence there is the need to improve airports performance and efficiency, also to maintain the high levels of quality to address the growing demand. Spanish air transportation system is growing annually and is it upmost important to maintain high levels of quality to address such demand. Through this study, performance and efficiency improvements are seek within several airport key areas such as Safety and Security, Quality Service, Productivity and Effectiveness, Financial and Environment.     

Determinants of airport cost flexibility in a context of economic recession

The recent economic downturn led to a significant contraction in the global demand for air travel and cargo. In spite of that, airports’ operating costs did not mirror the traffic trends and kept increasing during the same period, showing evident signs of lack of flexibility. With this background, this paper aims at identifying the drivers of airport cost flexibility in a context of economic recession. This is done by estimating a short-run stochastic cost frontier over a balanced pool database of 194 airports worldwide between 2007 and 2009. Using the total change in cost efficiency during the sample period as a proxy for cost flexibility, the impact of variables such as ownership, outsourcing, airline dominance, low-cost traffic, and revenue diversification is tested in a second-stage regression. Contrary to the existing literature, a higher level of outsourcing is shown to reduce cost flexibility. Results also indicate that low-cost traffic, diversification, and corporatization increase the airports’ ability to control costs. The negative impact of airline dominance suggests the need for more stringent regulations on slot allocation at congested airports in order to ensure optimal infrastructure usage.     

Air transport liberalisation and airport dependency: developing a composite index

Air transport liberalisation in Europe has produced some major changes to the networks operated by airlines and the services available at airports. Within this context the degree of airport dependency in terms of market, spatial and temporal concentration is important to know from an economic geography and risk management perspective. A composite index called the Airport Dependency Index (ADI) is developed to measure airport dependency based on the concept of the relative Gini coefficient. Liberalisation has had varying impacts depending on the size and type of airport and so a comparison is made of the degree of dependency at a large sample of European airports using the ADI. The ADI has the potential to provide insight on the sustainability and worthiness of financing airport projects, and on whether airports should diversify further their activities by investing in the growth and expansion of their network.     

Management of airport congestion through slot allocation

The lack of airport slots (the time allocated for an aircraft to land or take off), particularly at airports which experience congestion, have reached unmanageable proportions in recent years. The International Civil Aviation Organization (ICAO) records that, by the end of 1997, there were 132 slot controlled international airports. The World of Civil Aviation, 1997–2000. ICAO Circular 273-AT/113, p. 12 (118 year round and 14 during peak seasons). Between 1989 and 1998 the reported number of commercial aircraft in service increased by about 60% from 11,253 to 18,139 aircraft. In 1998, 1463 jet aircraft were ordered, compared with 1309 in 1997, and 929 were delivered compared with 674 aircraft in 1997. In 1998, the total scheduled traffic carried by airlines of the 185 Contracting States of ICAO amounted to a total of about 1462 million passengers and about 26 million tonnes of freight. These figures¹ are reflective of the rapidly increasing frequency of aircraft movements at airports, calling for drastic management of airport capacity. To cope with the demand, airlines are forming strategic alliances with themselves by utilizing such commercial tools as franchising, leasing and interchange of aircraft. The management of airport capacity through slot allocation is a critical consideration for the world aviation community. This article analyses the problem and discusses various issues related thereto.     

Airport slot allocation: From instruments to strategies

Slot allocation is widely used to tackle capacity shortfalls and manage delays in air traffic and airports. A variety of instruments are used, but little analysis has been conducted looking at the synergies that exist when these tools are integrated to form an overall slot allocation strategy. This paper aims to capitalise on existing research work in the field of airport slot allocation instruments to define a series of distinct and integrated strategies as the candidate strategic options for practical implementation.     

Airport traffic complexity and environment efficiency metrics for evaluation of ATM measures

For a given (current or planned) traffic demand, different air traffic management measures could result in different airport traffic complexity and efficiency. This paper presents the research on the relationship between airport traffic complexity and time and environmental efficiency for different air traffic control (ATC) tactics applied to the given or planned airport layout. Emphasis is placed on the evaluation of airport traffic complexity, aircraft fuel consumption, gas emissions and time efficiency for different ATC tactics and/or airport airfield layouts. For busy airports during peak hours, arrival queuing delays, taxi-in, taxi-out times and departure queuing delays increase, which induces additional unnecessary fuel consumption, gas emission and time inefficiency. In order to find a tool which could indicate potential delay generators, a measure of airport traffic complexity – called Dynamic Complexity is proposed. Experiments were performed for airports with different airfield layouts, for different traffic demands and ATC applied tactics using SIMMOD simulation model. Traffic situations were analyzed and delays were measured. The values of airport traffic complexity, fuel consumption and gas emissions were also determined. A comparative analysis of the results show: first, the proposed airport traffic complexity metric quite satisfactorily reflects the influence of traffic characteristics upon the environmental state of the system, and second, different ATM strategic and tactical measures (airport airfield infrastructure development and applied ATC tactics) could significantly reduce traffic complexity and increase time and environmental efficiency at the airport.