Developing measures of airport productivity and performance: an application of data envelopment analysis

Many studies have investigated the financial results and economic productivity of airlines but few have investigated the productivity or performance of airports, and how changes in the industry may have affected them. Most airports measure performance strictly in accounting terms by looking at only total costs and revenues and the resulting surpluses or deficits. Few utilize any type of productivity measure or performance indicator. This paper applies Data Envelopment Analysis to assess the performance of airports. It is used to construct performance indices on the basis of the multiple outputs which airports produce and the multiple inputs which they utilize. In particular we develop productivity measures for terminals and airside operations. The performance measures are then used in a second stage Tobit regression in which environmental, structural and managerial variables are included. The regression results provide a ‘net’ performance index and also identify which variables the managers have some control over and what the relative importance of each variable is in affecting performance. The data set contains a panel of 21 U.S. airports over a five-year period.     

Measuring airports’ operating efficiency: a summary of the 2003 ATRS global airport benchmarking report

This paper provides a partial summary of the 2003 ATRS (Air Transport Research Society) Global Airport Benchmarking Report which uses the annual data for 2000–2001. The objective of the ATRS benchmarking report is to measure and compare the performance of several important aspects of airport management and operation: productivity and efficiency, unit costs and cost competitiveness, financial results. The report also examines the relationships between various performance measures and airport characteristics in order to better understand the observed differences in airport performance. This particular paper extracted from the benchmarking report focuses on measuring and comparing operating efficiency performance of the world’s major airports. In particular, the paper presents the results on the airports’ Variable Factor Productivities (VFP) after removing the effects of the variables beyond managerial control. In the process, it identifies the effects of various factors influencing airport’s VFP, and computes a ’residual’ VFP index as an indicator for airports’ operations efficiency.     

Connectivity levels and the competitive position of Spanish airports and Iberia’s network rationalization strategy, 2001-2007

This paper examines the connectivity of the Spanish airport system between 2001 and 2007. Over the period, network carriers considerably strengthened the connectivity between Spanish airports and major European hubs. Although OneWorld is still the dominant alliance in Spain, SkyTeam and Star achieved a larger connectivity share through the growth of indirect services provided through their northern European hubs. In addition, the network rationalization strategy of Iberia and its decision to concentrate operations at Madrid-Barajas had important implications for the connectivity of other Spanish airports. Low-cost carriers have boosted direct connectivity from secondary Spanish airports.     

An assessment of delivery changes for UK terminal air navigation services

In order to meet government contestability policy ambitions, the United Kingdom Civil Aviation Authority (CAA) has undertaken a range of initiatives to create a competitive market for terminal air navigation services (TANS). This paper examines the critical dynamics underlying recent TANS service delivery changes at the nine United Kingdom airports that fall within the Single European Sky performance scheme (SES) using industry data and Porter's five forces model. Interviews with CAA, NATS and airport operators, along with publically available material, are used to explore the various elements impacting competition for TANS at these airports. Competition is intense among a very small number of companies. In addition to optimizing service cost, airport operators require greater value for money including alignment to strategic-operational goals, closer integration with other airside functions and payment structures that are performance based. Gatwick and Birmingham airports changed service provisions due to concerns about the value for money proposition offered by NATS Services Ltd (NSL). This paper also illustrates how competition has changed the customer orientation of NSL. It has been forced to evolve quickly from an expensive, perceived as somewhat arrogant, organisation to one that must be capable of aligning to the cost and service requirements of its customers. Importantly for the ATM industry this paper provides evidence that competition drives lower service costs and provides greater value for money for airlines and airport operators.     

Environmental capacity: noise pollution at Catania-Fontanarossa international airport

Airport capacity has widely been used as a measure of the level of performance of airport infrastructure. In the last decade or so, a new way of interpreting capacity has established itself that includes environmental compatibility, especially in terms of noise nuisance. This study initially offers an analysis of the environmental compatibility of Catania-Fontanarossa airport and then generalizes the methodology. The analysis was carried out with the aid of the integrated noise model (INM) software. This makes it possible to formalize the relationship between the four principal factors determining aircraft noise nuisance: level of noise, fleet composition, number of operations per day and affected surface. It allows the construction of abacuses showing the trend of each of the four factors, as the others vary. These abacuses can help in airport planning and management by providing a simple and quick way to handle environmental concerns especially for computing environmentally based landing/takeoff fares imposed on aircraft.     

Methods of air traffic management in the airport area including the environmental factor

In the modern approach to air traffic management (ATM), issues related to air quality and climate protection have led to the introduction of a growing number of new restrictions instead of having these issues be the objectives of actions taken. The aim of the study was to investigate whether it is possible to improve air quality while controlling pollution emission by introducing changes in the organization of air traffic control at the airport. For this purpose, mathematical models of emissions were created. These concern the movement of aircraft near the airport and emission of carbon dioxide and the spread of human health related substances emitted from a landing airplane's engine. The first case refers to the possibility of using different arrival procedures. The second case was to adapt the Pasquill formula by treating landing aircraft as a sequence of point-source emissions. As a result of applying the designed models and software tools, it was proven that both a change in the arrival trajectory and a change of the runway can contribute to a reduction of CO₂ emission into the atmosphere. The emission maps created for different aircraft approach profiles show the ability to control the local concentration of harmful emissions. The study clearly shows that the current approach of maximizing throughput is not beneficial to air quality. ATM services should consider the use of other variants of air traffic organization, particularly during periods of reduced traffic.     

Does a reward program affect customers’ behavioural intention of visiting the airport? A case study of Singapore Changi Airport

An understanding of the behavioural intentions of customers in visiting airports may help airport management to boost airport retail revenue (i.e. non-aeronautical revenue) by increasing customer spending at the airports. This study aims to examine the connection between airport reward programs and customers' behavioural intentions of visiting the airport, attempting to bring some benefits and credits for implementing reward programs in the airport sector by using Singapore Changi Airport as a case study. Two types of customer behavioural intentions (i.e. time spent at the airport and various purposes of visiting the airport) were investigated in the study to examine the effects of Changi Airport's reward program (i.e. Changi Rewards). An on-line survey was conducted, and the participants' responses were analysed via a structural equation modelling approach. The results showed that the attractive benefits of Changi Rewards could have a positive influence on arousing customers' intentions to engage with the programme. In addition, customers' intentions to engage with the programme can have a positive effect on increasing passengers' time spent at the airport and inducing customers to visit the airport for leisure purposes. Managerial implications to the airport sector are discussed.