Measuring the influence of congestion on efficiency in worldwide airports

This short communication evaluates the influence of congestion on the technical efficiency of airports using three different approaches. To accomplish this aim a sample of 141 worldwide airports is used. The results show considerable signs of congestion inefficiency in some airports, highlighting the importance of studying this phenomenon.     

Technical efficiency of UK airports

In this paper, the random stochastic frontier model is used to estimate the technical efficiency of UK airports. The airports are ranked according to their productivity for the period 2000–2005 and homogenous and heterogeneous variables in the cost function are disentangled. These changes the ranking of the efficiency of UK airports compared to more conventional measures.     

Bootstrapped scale efficiency measures of UK airports

This paper introduces the bootstrapping methodology to analyse and test the scale efficiency of airports. The results from a sample of 27 small and large UK airports indicate that most large airports are scale efficient or operating in a region of decreasing returns to scale, while most small airports are operating in a region of increasing returns to scale. We relate the results to the current industry trends and provide directions for future research.     

Accounting for size in efficiency comparisons of airports

This paper adopts the metafrontier model to analyze and compare the technical efficiency of small and large UK airports. The interesting feature of the model is that it takes into account the technological differences in the estimation of efficiency, and thus increases the accuracy in the efficiency comparison between heterogeneous airports. Results show that large airports are generally more technically efficient and have less operational wastage than small airports. Along with size, factors such as location, technological access, and capital investments could contribute to the efficiency difference between small and large airports.     

Aircraft operational costs and turnaround efficiency at airports

The aim of this paper is to investigate the relationship between flight schedule punctuality and aircraft turnaround efficiency at airports, in order to minimise system operational costs and meanwhile to maintain a required level of schedule punctuality. Investigations of aircraft operational costs, passenger delay costs and airline schedule time-opportunity costs are carried out in this paper. A mathematical model is applied to simulate aircraft turnaround operations by considering the stochastic effects of schedule punctuality as well as aircraft turnaround performance. Two numerical examples demonstrate the performance of the aircraft turnaround model. Results show the significance of a proper use of schedule buffer time in maintaining schedule punctuality performance.     

Cost efficiency of African airports using a finite mixture model

This paper evaluates the operational activities of African airports using a finite mixture model that allows us to control for unobserved heterogeneity. In doing so, a stochastic frontier latent class model, which allows for the existence of different technologies, is adopted to estimate cost frontiers. This procedure not only enables us to identify different groups of African airports analysed from Angola and Mozambique, but also permits the analysis of their cost efficiency. The main result is that three groups are identified in the sample, each equipped with completely different “technologies”, suggesting that distinct business strategies need to be adapted to the characteristics of the airports. Some managerial implications are developed.     

The geographical efficiency of Spain's regional airports: A quantitative analysis

Previous studies of the role of regional airports in the Spanish economy have focused on calculating efficiency using air traffic as the output and airport infrastructure data as the input. We present an alternative quantitative analysis based upon the geographical structure within the airport's market basin. We formulate a ‘geographical efficiency’ model that considers territorial variables within the airport hinterland. Input data for our model include the socio-economic structure of the population, intermodal transport links, industrial and tourism potential and existing leisure-related services. The output is the annual number of passengers associated with such constraints. The result is a relative efficiency estimate that shows uneven patterns of geographical efficiency amongst Spain's regional airports and also provides insights into opportunities for expanding some of these critical items of infrastructure. They suggest that some of Spain's regional airports may be better placed than others to compete in a liberalized market that exhibits a clear tendency in favor of coastal, tourism-based airports.     

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.     

Measuring the potential for self-connectivity in global air transport markets: Implications for airports and airlines

One of the strategies that air travellers employ to save money is self-connectivity, i.e. travelling with a combination of tickets where the airline/s involved do not handle the transfer themselves. Both airports and airlines, particularly low-cost carriers, have recently started catering to the needs of this type of passengers with the introduction of transfer fees or the development of self-connection platforms. The evidence provided by the existing literature, however, suggests that the degree of implementation of these strategies falls short of its true potential. In order to investigate how much self-connectivity could be observed in global air transport markets, this paper develops a forecasting model based on a zero-inflated Poisson regression on MIDT data. We identify the airports that have the highest potential to facilitate self-connections, as well as the factors that hinder or facilitate the necessary airline agreements at major locations. The results from this paper have many implications in regards to the widespread implementation of self-connection services and the future of the air travel industry.     

Technical efficiency and productivity changes in Spanish airports: A parametric distance functions approach

This paper contributes to the airport benchmarking literature in two ways. To our knowledge, this is the first attempt at using a stochastic distance function to measure airports’ productivity changes while considering multiple outputs. Secondly, we calculate the evolution and decomposition of the Total Factor Productivity (TFP) for Spanish airports. The average rate of productivity showed a slight annual improvement of 0.9%, and the core engine of this was 3% increase in technical progress rather than through efficiency. Results, by airport, identify those needing improvement, to be more attractive in the Spanish airport restructuring program.     

Airport competition - Regional airports losing ground to main airports

Regional airports in Norway are losing market shares to nearby main airports on flights to the national capital, Oslo, and on international travel via Oslo. Travellers are willing to spend several hours extra driving to a larger airport in order to take advantage of lower fares and more convenient airline services. Traffic leakage from regional airports is high when the service from the regional airport is indirect and fare differences are large. Public service obligation tenders (PSO) set maximum fares on the regional legs, but do not cover through travel from regional airports which involve commercial legs. Traffic leakage is particularly evident in the leisure segment. Leakage levels tend to increase as competition is intensified at main airports, but the evidence is rather mixed. Logistic curves of airport market shares have proven to be useful when comparing spatial variations in leakage levels.     

Meetings facilities at airports

This paper investigates the extent to which airports act as venues, the importance that airports place on this type of activity, and whether it is certain categories of airport that are involved in this type of activity. Airports have always been a vital element of business travel in providing access to a destination where business can be conducted or where meetings, conferences and events can be held. In this situation it is largely the availability of air services at the airport that will attract passengers rather than the airport itself. However in recent years airports have become more than just facilitators of access and have developed infrastructure and services (’meetings facilities’) that allow them to become meeting venues in their own right.     

The privatization of Argentine airports

The significant increase in air traffic in Argentina during 1990s highlighted a need to upgrade the country's airport infrastructure. In the ideological and political–economical context of the period, the heavy investment required could not be carried through without private capital and thus a National Airport System was developed with an accompanying regulatory agency. This article looks at the origin, characteristics, and operations of this system.     

Current accounts of Japanese airports

The paper examines the current account of 41 major airports. When we exclude depreciation costs, only seven airports are profitable. When depreciation is excluded, only three airports are making profits. Airports managed by local governments are very difficult to sustain financially without subsidies. Airports with more than 5.2 million passengers are profitable when depreciation is taken into account, however most local airports have fewer than 2.5 million passengers. When depreciation costs are excluded, airports need at least 2.7 million passengers to be viable.     

Strategies and pitfalls in the infrastructure development of airports: A comparison of Milan Malpensa and Berlin Brandenburg International airports

The paper analyses two airport investment projects in Europe: the completed investment at Milan Malpensa Airport and the investment at Berlin Brandenburg International. The two facilities were chosen because of similarities in their market environments. The paper examines the history of the projects, their objectives, demand forecasts, assessment methodologies and the strategies of the main carriers that use them. A comparison between expectations and outcomes for Malpensa a decade after its opening allows examination of the validity of the parameters used in the decision-making. The criteria being used to assess the investment in Berlin Brandenburg International are explored.     

De-hubbing of airports and their recovery patterns

The paper analyzes cases of de-hubbing in air transport between 1997 and 2009. It initially addresses the conditions to be met for airports to be identified as de-hubbing cases. Second, it examines what happens after de-hubbing by clustering the cases into homogenous groups that show that, on average, airports that experienced de-hubbing did not recover their original traffic within five years and that de-hubbing is likely to be irreversible. When hub carriers were replaced at least partially by low-cost carriers, airports on average recovered faster. De-hubbing adversely affects the number of destinations served less severely than the seats offered by carriers.     

Operational efficiencies across Asia Pacific airports

This paper analyses various dimensions of operational efficiencies in major Asia Pacific airports through Data Envelopment Analysis (DEA) models that simultaneously account for external macroeconomics and price factors. Results from this study show that technical, scale and mix efficiencies are high among the major Asia Pacific airports. In addition, significant disparities in cost efficiencies were detected amongst these airports. These disparities can be attributed to the presence of country-specific effect and differences in allocative efficiencies. A virtual airport is then introduced as a superior performer to rank the efficiency performances of airports.     

Planning towing processes at airports more efficiently

This paper addresses the towing process of airplanes as part of the turnaround process. We introduce a VRP based MIP model which assigns different types of towing tractors to jobs with specified service time windows. The objective function minimizes operating costs subject to operational restrictions such as technical compatibility of tractor types with plane types. Our modeling approach allows for multiple depots as well as multiple trips. To solve the model we develop a column generation heuristic. Computational results show the superior behavior of the proposed heuristic compared to the original MIP formulation solved with CPLEX. In a case study we derive insights which support schedulers in their daily work. For this, we identify cost drivers and evaluate the efficiency of manual schedules in retrospect.     

Wildlife management practices at western Canadian airports

A survey of 38 airports in British Columbia, Alberta and Saskatchewan, Canada, is used to document and explore differences in use of Airport Wildlife Management Plans; common wildlife attractants; wildlife countermeasure usage and outcomes; and animal strike record keeping systems. Hazardous activities and practices for managing waste and agricultural crops commonly occurred within 8 km of airports, but also occasionally airside or groundside. Maintaining long grass was the most routinely used countermeasure, but there are conflicting responses regarding the most appropriate grass length to deter wildlife. Removal of diverse habitat had the highest success ranking among listed countermeasures. Over 75% of airports kept strike records, but less than 7% used them to measure the outcomes of countermeasure implementation.     

Segmentation of low-cost flights users at secondary airports

Low-cost carrier services are important for many tourist destinations. However, there is little information about the characteristics of travellers using low-cost airlines, and their flight preferences. The typical segmentation of air travellers is business versus leisure travellers; and business versus tourist fares. We use segmentation analysis focusing on low-cost travellers’ valuations of various flight attributes and trip-related characteristics, most notably those related to destinations, based on a sample of foreign travellers who used Girona Airport, Spain.