Operational efficiency of Asia–Pacific airports

Airports are important drivers of economic development and thus under tremendous pressure from emerging competitors. However, few studies have analysed the operational efficiency of Asia–Pacific airports. This study therefore evaluated the operational efficiency of 21 Asia–Pacific airports between 2002 and 2011. A two-stage method was used: Data Envelopment Analysis (DEA) to assess airport efficiency, followed by the second-stage regression analysis to identify the key determinants of airport efficiency. The first-stage DEA results indicated that Adelaide, Beijing, Brisbane, Hong Kong, Melbourne, and Shenzhen are the efficient airports. The second-stage regression analysis suggested that percentage of international passengers handled by an airport, airport hinterland population size, dominant airline(s) of an airport when entering global airline strategic alliance, and an increase in GDP per capita are significant in explaining variations in airport efficiency.     

International air network structures and air traffic density of world cities

This paper examines international air passenger and cargo flows within and among Asia, Europe, and America, and the degree of air traffic density for major cities worldwide, using a basic gravity model composed of GDP, population, distance, and several dummy variables. The results reveal that many cities are strengthening their position as international air transportation hubs, especially: Tokyo, Hong Kong, Singapore, London, Paris, Frankfurt, Amsterdam, New York, and Miami. Finally, the results show that the air traffic density of three cities, Seoul, Hong Kong, and Amsterdam, is growing at an extraordinary rate.     

CO2 emissions associated with hubbing activities in air transport: an international comparison

Hubbing is an important operational practice in air transport. Many studies have been conducted to examine the benefits and impacts of hubbing from an economic perspective. However, its impact on CO₂ emissions, especially across different air spaces, is not well understood. This paper explores the impact of hubbing activities in air transport from an environmental perspective. With a detailed methodology and data from the Greek and Hong Kong/Sanya flight information regions (FIRs), three levels of CO₂ emissions are estimated: airport-based, airspace-based and flight-based. After contrasting the CO₂ emission efficiencies of Athens International Airport (AIA) and the Hong Kong International Airport (HKIA), aircraft type and flight distance are examined to explain their emission efficiency differences. It is found that HKIA is associated with poorer CO₂ emission efficiency at the airport and airspace levels because of the larger aircraft and longer flight distance. However, when CO₂ emission efficiency at the flight level is considered, HKIA, with a higher passenger load factor, performs better. Major international hub airports should implement additional environmental measures to minimize the impact of hubbing activities on CO₂ emissions at the airport and airspace levels.     

Measuring aeronautical service efficiency and commercial service efficiency of East Asia airport companies: An application of Network Data Envelopment Analysis

Improving operation efficiency has become an important development strategy for many airport companies. However, there is little research on these companies' operating process decomposition or discussing the causes of inefficiency in sub-processes. This study evaluates the overall efficiency and the operational efficiencies of aeronautical service sub-process and commercial service sub-process for 10 East Asia airport companies from 2009 to 2013 using Network Data Envelopment Analysis (NDEA) and identifies the key influencing factors of respective sub-processes efficiency by employing the Panel Data model. The first-stage NDEA results indicate that only Airport Authority Hong Kong in 2012 and 2013 performed efficiently in both sub-processes and achieved overall efficiency. The overall efficiencies of all other companies are not high. During the entire study period, in aeronautical service sub-process, Beijing Capital International Airport Co., Ltd. and Shanghai International Airport Co., Ltd. performed efficiently, while in commercial service sub-process, only Hong Kong airport performed efficiently. The second-stage regression analysis implies the number of airlines served and the number of destinations have significant and positive influences on the efficiency of aeronautical service. Non-aeronautical revenues and service quality have significant and positive influences on commercial service efficiency.     

Analysis of bilateral air passenger flows: A non-parametric multivariate adaptive regression spline approach

Gravity models have long served as a framework for analyzing bilateral flows, trade and many other activities. To estimate a gravity model, (parametric) linear regression techniques have been commonly employed to develop the relationship between passenger flows and factors that can significantly influence these flows. This study explores the application of an alternative method, the non-parametric multivariate adaptive regression spline (MARS) technique, to identify the determinants for air passenger flows between pairs of countries. The data of 2006 and 2007 air passenger flows between pairs of countries in the APEC region were collected to develop the MARS models. Results indicate that distance between the countries, annual import value, national per capita income, unemployment rate and consumer price index of the origin country, as well as GDP, annual import value, and consumer price index of the destination country are significant determinants for bilateral air passenger flows.     

Economic contribution of essential air service flights on small and remote communities

The Essential Air Service Program (EAS) has attracted considerable criticism and has been a target for either modification or complete termination almost since its inception through the Airline Deregulation Act in 1978. Although its opponents emphasize the program's inefficiency, its supporters claim that the program is crucial to accessing small and remote communities, which helps them develop economically and socially. This paper demonstrates the economic contributions of EAS flights to small and remote communities. Using a two-stage least squares estimation, the major findings indicate that a 1% increase in air passenger traffic in EAS airports with a minimum annual air passenger traffic of 1000 likely leads to a 0.12% increase in per capita income of the community served by that airport. Our results also suggest that EAS communities that are able to sustain their subsidized flights experienced higher per capita income growth in the 1999–2011 period than did ex-EAS communities that lost their flights as a result of non-eligibility.     

Entry patterns of low-cost carriers in Hong Kong and implications to the regional market

This study aims to provide a better understanding of Asia's low-cost carriers (LCCs) by empirically analysing their route entry patterns in Hong Kong. Two alternative models have been tested, namely a standard probit model and a generalized least squares estimation. Consistent findings from the two models suggest that LCCs in Asia have a preference for large markets with big populations, high incomes and high traffic volume. On the other hand, the dominance of incumbent full service airlines (FSAs), fierce route competition and the lack of secondary airports are not critical to the growth of LCCs. However, government regulations and airport access are main impediment factors. Despite the adoption of long-distance low-cost models by the region's airlines, geographic distance still plays an important role in LCCs' entry decisions. For the growth of low-cost travel and associated benefits in the tourism industry and overall economy, it is important for governments in the region to liberalize aviation markets, provide sufficient airport capacity, and promote efficient allocation of airport slots.     

The role of London airports in providing connectivity for the UK: regional dependence on foreign hubs

In a context of ongoing debate about the future UK aviation policy and its implications for regional economic development, this paper discusses the role of London Heathrow and the South East airports in providing connectivity for the UK, with particular focus on the international markets that originate from regional UK airports. Using an MIDT dataset of worldwide passenger itineraries served by the European airport network during May 2013, we first establish whether London Heathrow can currently be considered the most important hub for the UK, in terms of traffic generation, connectivity, and centrality, while also measuring the dependence of UK regions on foreign airports and airlines to remain connected with the rest of the world. Results show that, despite the competition, London Heathrow benefits from its massive traffic generation to remain the most central gateway for overall UK air transport markets. However, when only regional markets are considered, significant dependence on foreign hubs appears in many destinations, particularly to Asia–Pacific or the BRIC countries where above 80% of passengers use transfer flights. These results fit nicely with the observed trends of seat de-concentration and hub-bypassing in the airline industry. While dependence on foreign hubs can be interpreted as a sign of vulnerability, there is also the argument that bypassing Heathrow allows regional airports to develop new markets and reduce the level of congestion in the London airport system.     

The determinants of air passenger traffic at Turkish airports

Investigating the determinants of air passenger traffic has become commonplace. In contrast with most previous publications, this paper investigates these determinants in an emerging country, Turkey, at the provincial level between 2004 and 2014. We find that GDP/capita, population, distance to alternative airports, tourism, leading cities, and international migrations all support more air traffic. Furthermore, market concentration is associated with less traffic, and the presence of academics with more traffic. Mapping models' residuals suggest catchment areas, surface transport options, domestic migrations and (geo)politics could also matter. Accordingly, it appears the determinants of Turkey's air passenger traffic do not differ from those of developed economies. The results also suggest new airports should be built based on the aforementioned factors.     

The impact of Air Service Agreement liberalisation: The case of Nigeria

The positive impact of air transport liberalisation as suggested by economic theories and empirical studies has inspired many developing countries like Nigeria to liberalise some of its Air Service Agreements (ASAs). This paper seeks to examine the extent to which international air service liberalisation has impacted upon Nigeria ten years after it was introduced. The research developed a cross-sectional model with passenger traffic as the dependent variable, while macroeconomic factors (trade and GDP), historical links, distance and ASAs (a proxy for liberalisation) served as independent or predictor variables. The analysis revealed a set of ASA stages in the country's policy-making process (restricted Bilateral Air Service Agreement, Open Skies Agreement and Yamoussoukro Declaration). Further analysis showed that the predictor variables were all significant in explaining passenger demand. The model demonstrated that the liberalisation of market access to the Open Skies Agreement level could stimulate traffic growth by at least 65 percent. The findings can assist in guiding policy and industry stakeholders in future decisions relating to liberalisation and ASAs.     

Antecedents and consequences of passenger satisfaction with the airport

There is a growing interest in the passenger experience at the airport. Particularly, the relevance of passenger satisfaction has been emphasized. However, although different research approaches have been used, there is still a gap related to understanding the several relationships between aspects associated with passenger satisfaction with the airport. In this study, a comprehensive conceptual model, which includes the relationships between key antecedents and consequences of passenger satisfaction, was developed and examined. Using structural equation modeling analysis, several findings concerning passenger expectations, airport service quality, switching costs for changing airports, and passenger loyalty towards the airport are stressed.     

Do the Gulf airlines distort the level playing field?

Gulf State aviation repeats a national development model previously applied in Southeast Asia. Developing national carriers and airport infrastructure together supports tourism, technology transfer and economic growth. Gulf airports leverage geographic advantage, but greater benefits flow from the absence of curfews or expansion constraints. Comparing Boeing B777-300 unit costs for one-stop journeys between Hong Kong and four European cities via Dubai, Frankfurt, London, and Amsterdam finds that the longer Dubai journey absorbs any cost advantage from through journeys on wide-body aircraft. Configuration impacts unit cost. Emirates configurations match Lufthansa, British Airways and KLM. Qatar Airways and Etihad match less dense Asian carriers. Finally, lower airport charges persist for the Gulf airports despite the introduction of transfer passenger fees in 2016.     

Warehouse location problems for air freight forwarders: a challenge created by the airport relocation

The move of Hong Kong International Airport from the city centre to a suburban area in July 1998 provided sufficient capacity to meet the increasing demand of passenger and air-cargo flows in Hong Kong in the foreseeable future. However, the move has adverse side effects such as causing the readjustment of many existing systems and creating many imminent strategic problems. One of such problems is the warehouse location of freight forwarders: they have to decide whether they should locate their warehouses in the new airport, in current locations, or in new locations somewhere in the city. This paper delineates the results of a survey conducted in the summer of 1997 before the airport was relocated. The survey asked what decisions the freight forwarders had made and how they evaluated some potential warehouse locations. The paper also considers two mathematical models, which explain and predict, respectively, the location pattern of freight forwarder warehouses before and after the relocation of the airport.     

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.     

Does the nature of airport terminal service activities matter? Processing and non-processing service quality,passenger affective image and satisfaction

The surge in air transport demand and the increasingly competitive and volatile market dynamics due to airline deregulation are rapidly transforming airports’ character into multi-service firms and destinations. As a result, service performance measurement of significant systems and their consequent impact on airport users are crucial in creating better airport service design, operation and management for sustainable competitive advantage. The present study 1) assesses the applicability of the Airport Indicators of Passenger Experience (AIPEX) model on Shanghai Pudong International Airport (PVG), and 2) tests a theoretical model that explores the direct and indirect relationships among airport service quality, passenger affective image and satisfaction, as well as the moderating mechanism of passenger type (travel purpose) in these associations. The results indicate that, the AIPEX model fits the PVG context for airport service performance assessment. Also, the theoretical model suggests robust direct associations among processing/non-processing domains and passenger satisfaction, as well as the processing domain and passenger affective image, except non-processing domain and passenger affective image relation. Moreover, significant mediating and moderating effects of passenger affective image and travel purpose on the significant positive direct associations are found. Further, implications for theory and practice are discussed.     

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 sky is the limit? The determinants and constraints of European airports commercial revenues

This study investigates the determinants of commercial and retail airport revenues from real estate operations. Aviation revenues per passenger are mainly determined by the national income per capita in the area where the airport is located, the percentage of leisure travelers and the size of the airport. Main drivers of commercial revenues per passenger include the number of passengers passing through the airport, the ratio of commercial to total revenues, national income, the share of domestic and leisure travelers and the number of flights. These results are in line with previous findings of a negative influence of business travelers on commercial revenues per passenger. We also find that a large amount of retail space per passenger is generally associated with lower commercial revenues per square meter confirming decreasing marginal revenue effects. Real estate revenues per passenger are positively associated with national income per capita at airport location, share of intra-EU passengers and percent delayed flights.     

内地与香港铁路旅客联运法律研究

香港与内地法律制度存在很大差异，要通过协议方式确定直通旅客列车在运输过程中对法律差异的处理原则和方法。探讨完善内地与香港铁路旅客直通运输法律制度的必要性，在比较分析内地与香港铁路客运法律制度特点的基础上，就完善铁路旅客直通运输法律制度等问题进行研究，提出具体的立法建议，为立法部门提供参考。     

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.     

Business connectivity,air transport and the urban hierarchy: A case study in East Asia

This paper explores the effect of business connectivity between cities on their air traffic connections, and in turn on their place in a region's urban hierarchy. Its focus of attention is East Asia, where economic development is underpinned by a complex set of international flows of trade and investment. Business connectivity is a key part of these flows. The research incorporates a measure of business connections in a regression model that previously relied on GDP per head, population and distance to account for international air links. Results confirm that business connectivity is a more important influence on the level of international air links within East Asia, and plays a major role in explaining the changes in city rank over time. The paper concludes with suggestions that possible incorporation of domestic air travel (itself larger than the intra-regional flows in this region) could enrich the insight of this approach.