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.     

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.     

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.     

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

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

Airport quality and productivity changes: A Malmquist index decomposition assessment

This paper analyses the productivity of 20 Italian airports management companies during the period 2006–2008 using a DEA Malmquist index that includes a quality component. The proposed methodology is applied for the first time to the airport industry. In doing so, we directly assess the impact of the quality of services delivered by an airport on its productive performance. The study shows that, while Italian airports possess an acceptable level of quality in terms of their infrastructure, their managerial/administrative procedures must be strengthened in order to better deal with both technological modernization and passenger waiting time at the airports.     

A methodology for establishing operational standards of airport passenger terminals

This paper discusses a methodology for establishing the operational standards of service performance of airport passenger terminals using a perception–response model. The proposed approach is defined by the graphical representation of passengers’ collective attitudes towards the range of operational service at an airport passenger terminal. It adopts new concepts to establish service standards through a special survey to better interpret terminal operations and service level at each facility. It is expressed in terms of passengers’ perception of various service levels and their response to the respective service conditions. The methodology may provide practical service standards of airport terminals and prove to be a practical and convenient technique to airport planners, designers, consultants, operators, and airport managers.     

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.     

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.     

The impact of terminal re-organisation on belly-hold freight operation chains at airports

While it is widely acknowledged that airport re-organisation from destination to dedicated airline group terminals makes passenger travel more seamless, more efficient and also more profitable for both airlines and airports, there is little known about the impacts of such change on freight and in particular belly-hold cargo chains. Our analysis includes data from all airports in Australia but focuses primarily on the proposed re-organisation of Sydney Kingsford Smith airport. This paper reveals a significant relationship between international freight volumes, terminal organisation and freighter operations. However, our interview results only confirm the volume/aircraft type relationship. The paper aims to contribute to the general discussion on the impact of passenger terminal organisation on belly-hold freight operations and more specifically to the consultation process around airport master planning.     

The benchmarking of airport performance

This paper examines how benchmarking is being used by airport managers as a means of internal performance comparison and improvement. Drawing on interviews with airport managers and a questionnaire survey of the world's top 200 busiest passenger airports, the paper discusses the nature, prevalence and consequences of current benchmarking practices in airports. The authors also include a review of the literature on airport benchmarking and a discussion of the characteristics and relevance of Best Practice Benchmarking.     

An airport operations proposal for a pandemic-free air travel

The aviation industry needs to work on the resilience of air travel against health threats and regain passenger trust. This paper proposes a pandemic-free travel concept based on creating an infectious diseases free zone in the airport terminal building through screening of passengers, crews and airport workers. This research shows that infectious disease detection methods applicable at the airport could be available in a short timeframe, at affordable cost and in scale. The potential location of passenger health screening, facilitation requirements, health responsibilities delegation and appropriate usage of industry standards for regulations are key elements to a potential implementation that would be phased and long term.     

Inefficiencies and scale economies of European airport operations

In this paper we argue that European airports, on average, are inefficient. Airline inefficiency (low load factors) appears to contribute significantly to airport inefficiency in terms of air passenger movements. We find that the average airport in Europe operates under constant returns to scale in “producing” air transport movements and under increasing returns to scale in producing passenger movements. These operating characteristics are statistically tested in a stochastic frontier model. Using data envelopment analysis, in which the number of runways is used as a fixed factor, technical and scale efficiency coefficients have been assessed. There appears to be no region-specific effect in that an airport in a certain country or region is on average more (in)efficient.     

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.     

Future airport terminals: New technologies promise capacity gains

The changing dynamics of passenger processes in future airport terminals resulting from pressures from both the demand and supply side are analyzed in this paper. Short and long term (beyond 2020) developments are studied following technology advances and business plans of airlines and airports. Key technologies affecting the central passenger processing functions include identity management and biometrics, Near Field Communications, Big Data analytics and smartphone applications. A simulation model is developed and used to assess the impact of forthcoming changes on the airport's departure hall. Lisbon Portela airport is used as case study. It is shown that passenger process times at the check-in and security checkpoints are significantly reduced, due to the introduction of passenger facilitation processes, under a range of behavioral, technological and policy uncertainties. The most salient implication of these reductions is the quantified capacity gains in the building which question the need for terminal expansion.     

Assessment of passenger benefits brought about by international airport projects

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

Assessing airport terminal performance using a system dynamics model

Current models for airport terminal performance assessment require substantial modeling effort to be customized to the configuration of a particular airport terminal and to reflect adequately the alternative airport operational policies adopted in a user-friendly way. Therefore, there is a need to develop a generic, yet flexible decision-support tool that will facilitate high-level decision-making related to fundamental changes in the structure and operation of the airport terminal system. This paper presents a generic and easily customizable system dynamics based tool for assessing the performance of the Athens International Airport passenger terminal under different demand and resource deployment scenaria.     

Sizing of processing and holding air terminal facilities for charter passengers using simulation tools

Charter passengers represent a category of airport users that imposes uncommon operating conditions to airport terminal facilities, which, if not anticipated, may result in a low level of service. This is usually the case of airports serving areas of tourist attraction where growth in demand of charter flights has made them the dominant passenger flow. This paper presents a simulation model that enables the investigation of charter passenger effects on air terminal facilities and enables the estimation of the level of service offered. Some of the model’s features can be easily implemented by use of spreadsheets. The paper concludes with a critical assessment of the results arisen in the master plan of two Greek airports where the simulation model was implemented.     

Analyzing passenger behavior in airport terminals based on activity preferences

Airport terminals are facilities that provide a variety of activities related to both the preparation of the passengers for their air trip (aeronautical) and their free time inside the terminal (non-aeronautical). In the last years, the number of non-aeronautical activities has substantially increased and significantly diversified both before and after the security checkpoint. The established role of non-aeronautical activities forces planners and managers to better understand passenger behavior. The potential of discrete choice models for the exploration of passenger behavior is analyzed in this paper. For the demonstration of the methodology, Lisbon Humberto Delgado International airport is used as a case study. Data is collected through a revealed and stated preference survey inside the terminal at the area before the security checkpoint. Activity-choice models are developed to identify the factors that affect the choices of the passengers over the area where they conduct non-aeronautical activities. Forecasts show that when increasing the percentage of passengers who conduct the check-in online and have planned their activities before arriving at the airport, the passengers’ preferences to conduct non-aeronautical activities only after the security checkpoint increase. This paper shows the contribution of developing discrete choice models in the better comprehension of passenger decisions over the activities they perform in an airport terminal.     

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

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

Access mode choice for relocated airports: the new Athens International Airport

To estimate the capacity requirements for all access related facilities of a new airport and to set pricing or operational policies it is necessary to forecast the share of each transport mode that airport passengers use. The development of these forecasts cannot be based on mere transfer of experience from other airports, particularly in the modern era of wide regulatory reforms, liberalization of the aviation market and increasing airport competition. First access modal split at the existing airport is determined via passenger classification and discrete choice modeling. Both are conducted via a passenger survey study specifically designed for this purpose. The resulting models are then employed to forecast access modal splits for the relocated airport by proper adjustment of the attribute values. The method is applied to the new Athens International Airport.