IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v57y2016icp168-183.html
   My bibliography  Save this article

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

Author

Listed:
  • Ferreira, Diogo Cunha
  • Marques, Rui Cunha
  • Pedro, Maria Isabel

Abstract

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.

Suggested Citation

  • Ferreira, Diogo Cunha & Marques, Rui Cunha & Pedro, Maria Isabel, 2016. "Comparing efficiency of holding business model and individual management model of airports," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 168-183.
    • Handle: RePEc:eee:jaitra:v:57:y:2016:i:c:p:168-183
    DOI: 10.1016/j.jairtraman.2016.07.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096969971630103X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2016.07.020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2001. "Relative efficiency of European airports," Transport Policy, Elsevier, vol. 8(3), pages 183-192, July.
    2. Leopold Simar & Valentin Zelenyuk, 2006. "On Testing Equality of Distributions of Technical Efficiency Scores," Econometric Reviews, Taylor & Francis Journals, vol. 25(4), pages 497-522.
    3. Adler, Nicole & Ülkü, Tolga & Yazhemsky, Ekaterina, 2013. "Small regional airport sustainability: Lessons from benchmarking," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 22-31.
    4. Gong, Stephen X.H. & Cullinane, Kevin & Firth, Michael, 2012. "The impact of airport and seaport privatization on efficiency and performance: A review of the international evidence and implications for developing countries," Transport Policy, Elsevier, vol. 24(C), pages 37-47.
    5. Wanke, Peter F., 2013. "Physical infrastructure and flight consolidation efficiency drivers in Brazilian airports: A two-stage network-DEA approach," Journal of Air Transport Management, Elsevier, vol. 31(C), pages 1-5.
    6. Cruz, Carlos Oliveira & Marques, Rui Cunha, 2011. "Contribution to the study of PPP arrangements in airport development, management and operation," Transport Policy, Elsevier, vol. 18(2), pages 392-400, March.
    7. Oliveira, Ricardo & Pedro, Maria Isabel & Marques, Rui Cunha, 2013. "Efficiency and its determinants in Portuguese hotels in the Algarve," Tourism Management, Elsevier, vol. 36(C), pages 641-649.
    8. Kevin Cullinane & Dong-Wook Song & Tengfei Wang, 2005. "The Application of Mathematical Programming Approaches to Estimating Container Port Production Efficiency," Journal of Productivity Analysis, Springer, vol. 24(1), pages 73-92, September.
    9. Diogo Ferreira & Rui Marques, 2015. "Did the corporatization of Portuguese hospitals significantly change their productivity?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(3), pages 289-303, April.
    10. Zou, Bo & Kafle, Nabin & Chang, Young-Tae & Park, Kevin, 2015. "US airport financial reform and its implications for airport efficiency: An exploratory investigation," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 66-78.
    11. Cinzia Daraio & Léopold Simar, 2007. "Conditional nonparametric frontier models for convex and nonconvex technologies: a unifying approach," Journal of Productivity Analysis, Springer, vol. 28(1), pages 13-32, October.
    12. Wanke, Peter F., 2013. "Physical infrastructure and shipment consolidation efficiency drivers in Brazilian ports: A two-stage network-DEA approach," Transport Policy, Elsevier, vol. 29(C), pages 145-153.
    13. Oum, Tae H. & Adler, Nicole & Yu, Chunyan, 2006. "Privatization, corporatization, ownership forms and their effects on the performance of the world's major airports," Journal of Air Transport Management, Elsevier, vol. 12(3), pages 109-121.
    14. Kristof De Witte & Rui Marques, 2010. "Designing performance incentives, an international benchmark study in the water sector," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(2), pages 189-220, June.
    15. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    16. Oum, Tae H. & Adler, Nicole & Yu, Chunyan, 2006. "Privatization, Corporatization, Ownership Forms and their Effects on the Performance of the World’s Major Airports," 47th Annual Transportation Research Forum, New York, New York, March 23-25, 2006 208026, Transportation Research Forum.
    17. Carlos Pestana Barros & Manolis Athanassiou, 2004. "Efficiency in European Seaports with DEA: Evidence from Greece and Portugal," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 6(2), pages 122-140, June.
    18. A. Camanho & R. Dyson, 2006. "Data envelopment analysis and Malmquist indices for measuring group performance," Journal of Productivity Analysis, Springer, vol. 26(1), pages 35-49, August.
    19. Halpern, Nigel & Pagliari, Romano, 2007. "Governance structures and the market orientation of airports in Europe's peripheral areas," Journal of Air Transport Management, Elsevier, vol. 13(6), pages 376-382.
    20. Marques, Rui Cunha & Brochado, Ana, 2008. "Airport regulation in Europe: Is there need for a European Observatory?," Transport Policy, Elsevier, vol. 15(3), pages 163-172, May.
    21. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.
    22. Curi, Claudia & Gitto, Simone & Mancuso, Paolo, 2011. "New evidence on the efficiency of Italian airports: A bootstrapped DEA analysis," Socio-Economic Planning Sciences, Elsevier, vol. 45(2), pages 84-93, June.
    23. Pestana Barros, Carlos & Dieke, Peter U.C., 2007. "Performance evaluation of Italian airports: A data envelopment analysis," Journal of Air Transport Management, Elsevier, vol. 13(4), pages 184-191.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gloria Isabel Rodriguez Lozano, 2021. "Los cambios en la productividad del sector bancario colombiano en el período 2002-2016," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 40(71), pages 105-132, February.
    2. lo Storto, Corrado, 2018. "The analysis of the cost-revenue production cycle efficiency of the Italian airports: A NSBM DEA approach," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 77-85.
    3. Diogo Ferreira & Rui Cunha Marques, 2018. "Identifying congestion levels, sources and determinants on intensive care units: the Portuguese case," Health Care Management Science, Springer, vol. 21(3), pages 348-375, September.
    4. Pacagnella, Antônio Carlos & Hollaender, Paulo Sodre & Mazzanati, Giovanni Vitale & Bortoletto, Wagner Wilson, 2021. "Efficiency drivers of international airports: A worldwide benchmarking study," Journal of Air Transport Management, Elsevier, vol. 90(C).
    5. Ferreira, D.C. & Marques, R.C. & Nunes, A.M. & Figueira, J.R., 2018. "Patients’ satisfaction: The medical appointments valence in Portuguese public hospitals," Omega, Elsevier, vol. 80(C), pages 58-76.
    6. Diogo Cunha Ferreira & Alexandre Morais Nunes & Rui Cunha Marques, 2020. "Operational efficiency vs clinical safety, care appropriateness, timeliness, and access to health care," Journal of Productivity Analysis, Springer, vol. 53(3), pages 355-375, June.
    7. Chen, Xiang & Grifell-Tatjé, Emili & Fu, Tsu-Tan, 2023. "A profit difference decomposition model for measuring group performance: an application to Chinese and Taiwanese commercial banks," Omega, Elsevier, vol. 120(C).
    8. Ferreira, Diogo Cunha & Marques, Rui Cunha & Pedro, Maria Isabel, 2018. "Explanatory variables driving the technical efficiency of European seaports: An order-α approach dealing with imperfect knowledge," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 41-62.
    9. Diogo Cunha Ferreira & Rui Cunha Marques, 2020. "A step forward on order-α robust nonparametric method: inclusion of weight restrictions, convexity and non-variable returns to scale," Operational Research, Springer, vol. 20(2), pages 1011-1046, June.
    10. Jae Hee Park & Ji Hee Kim, 2021. "The Impact of Airport Managerial Type and Airline Market Share on Airport Efficiency," Sustainability, MDPI, vol. 13(2), pages 1-16, January.
    11. Yuxiu Chen & Jian Yu & Sang-Bing Tsai & Jinfu Zhu, 2018. "An Empirical Study on the Indirect Impact of Flight Delay on China’s Economy," Sustainability, MDPI, vol. 10(2), pages 1-13, January.
    12. Weekx, Simon & Buyle, Sven, 2023. "The effect of airline dominance on airport performance: Empirical evidence from medium-sized European airports," Journal of Air Transport Management, Elsevier, vol. 107(C).
    13. Sergi, S. Bruno & D’Aleo, Vittorio & Arbolino, Roberta & Carlucci, Fabio & Barilla, David & Ioppolo, Giuseppe, 2020. "Evaluation of the Italian transport infrastructures: A technical and economic efficiency analysis," Land Use Policy, Elsevier, vol. 99(C).
    14. Ennen, David & Batool, Irem, 2018. "Airport efficiency in Pakistan - A Data Envelopment Analysis with weight restrictions," Journal of Air Transport Management, Elsevier, vol. 69(C), pages 205-212.
    15. Li, Ye & Cui, Qiang, 2018. "Airline efficiency with optimal employee allocation: An Input-shared Network Range Adjusted Measure," Journal of Air Transport Management, Elsevier, vol. 73(C), pages 150-162.
    16. Chien-Wen Shen & Yen-Ting Peng & Chang-Shu Tu, 2019. "Multi-Criteria Decision-Making Techniques for Solving the Airport Ground Handling Service Equipment Vendor Selection Problem," Sustainability, MDPI, vol. 11(12), pages 1-21, June.
    17. Daniel Feliciano & Laura López-Torres & Daniel Santín, 2021. "One Laptop per Child? Using Production Frontiers for Evaluating the Escuela 2.0 Program in Spain," Mathematics, MDPI, vol. 9(20), pages 1-17, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. D’Alfonso, Tiziana & Daraio, Cinzia & Nastasi, Alberto, 2015. "Competition and efficiency in the Italian airport system: new insights from a conditional nonparametric frontier analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 20-38.
    2. Chen, Ying-Hsiu & Lai, Po-Lin & Piboonrungroj, Pairach, 2017. "The relationship between airport performance and privatisation policy: A nonparametric metafrontier approach," Journal of Transport Geography, Elsevier, vol. 62(C), pages 229-235.
    3. Fabio Carlucci & Andrea Cirà & Paolo Coccorese, 2018. "Measuring and Explaining Airport Efficiency and Sustainability: Evidence from Italy," Sustainability, MDPI, vol. 10(2), pages 1-17, February.
    4. Liu, Dan, 2016. "Measuring aeronautical service efficiency and commercial service efficiency of East Asia airport companies: An application of Network Data Envelopment Analysis," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 11-22.
    5. Myung Je Lee & Changhee Kim, 2018. "A network DEA aeronautical and non-aeronautical production model: an application to South Korea airports," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-12, December.
    6. Lai, Po‐Lin & Potter, Andrew & Beynon, Malcolm & Beresford, Anthony, 2015. "Evaluating the efficiency performance of airports using an integrated AHP/DEA-AR technique," Transport Policy, Elsevier, vol. 42(C), pages 75-85.
    7. lo Storto, Corrado, 2018. "Ownership structure and the technical, cost, and revenue efficiency of Italian airports," Utilities Policy, Elsevier, vol. 50(C), pages 175-193.
    8. Fernández, Xose Luis & Gundelfinger, Javier & Coto-Millán, Pablo, 2022. "The impact of logistics and intermodality on airport efficiency," Transport Policy, Elsevier, vol. 124(C), pages 233-239.
    9. Toloo, Mehdi & Mensah, Emmanuel Kwasi & Salahi, Maziar, 2022. "Robust optimization and its duality in data envelopment analysis," Omega, Elsevier, vol. 108(C).
    10. Yu, Ming-Miin & Rakshit, Ipsita, 2023. "Assessing the dynamic efficiency and technology gap of airports under different ownerships: A union dynamic NDEA approach," Omega, Elsevier, vol. 119(C).
    11. Chaouk, Mohammed & Pagliari, Dr Romano & Moxon, Richard, 2020. "The impact of national macro-environment exogenous variables on airport efficiency," Journal of Air Transport Management, Elsevier, vol. 82(C).
    12. Pavlyuk, Dmitry, 2012. "Airport Benchmarking and Spatial Competition: a Critical Review," MPRA Paper 43391, University Library of Munich, Germany.
    13. Liu, Dan, 2017. "Evaluating the multi-period efficiency of East Asia airport companies," Journal of Air Transport Management, Elsevier, vol. 59(C), pages 71-82.
    14. Güner, Samet & Seçkin Codal, Keziban, 2022. "Endogenous and exogenous sources of efficiency in the management of Turkish airports," Utilities Policy, Elsevier, vol. 76(C).
    15. Mahmoudi, Reza & Emrouznejad, Ali & Shetab-Boushehri, Seyyed-Nader & Hejazi, Seyed Reza, 2020. "The origins, development and future directions of data envelopment analysis approach in transportation systems," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).
    16. Gong, Xiaoxing & Wu, Xiaofan & Luo, Meifeng, 2019. "Company performance and environmental efficiency: A case study for shipping enterprises," Transport Policy, Elsevier, vol. 82(C), pages 96-106.
    17. Wanke, Peter & Barros, C.P. & Nwaogbe, Obioma R., 2016. "Assessing productive efficiency in Nigerian airports using Fuzzy-DEA," Transport Policy, Elsevier, vol. 49(C), pages 9-19.
    18. Güner, Samet & Cebeci, Halil İbrahim & Antunes, Jorge Junio Moreira & Wanke, Peter F., 2021. "Sustainable efficiency drivers in Eurasian airports: Fuzzy NDEA approach based on Shannon's entropy," Journal of Air Transport Management, Elsevier, vol. 92(C).
    19. Evelin Krmac & Mozhgan Mansouri Kaleibar, 2023. "A comprehensive review of data envelopment analysis (DEA) methodology in port efficiency evaluation," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 25(4), pages 817-881, December.
    20. Barros, Carlos Pestana, 2011. "Cost efficiency of African airports using a finite mixture model," Transport Policy, Elsevier, vol. 18(6), pages 807-813, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:57:y:2016:i:c:p:168-183. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.