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The impact of airline lease agreements on the financial performance of US hub airports

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  • Richardson, Charles
  • Budd, Lucy
  • Pitfield, David

Abstract

This paper employs benchmarking analysis to examine the financial implications of the different types of airline lease agreements used by US airports. Five key financial performance areas relating to cost effectiveness, revenue generation, commercial performance, financial profitability and capital investment are analysed using financial data from 2011/12 for 23 of the 29 large-hub airports. The results show that compensatory airports are the most financially efficient, particularly in terms of debt efficiency, revenue generation and profitability while the vertical airport airline relationship that is common at residual airports delivers higher levels of commercial performance and cost efficiency.

Suggested Citation

  • Richardson, Charles & Budd, Lucy & Pitfield, David, 2014. "The impact of airline lease agreements on the financial performance of US hub airports," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 1-15.
    • Handle: RePEc:eee:jaitra:v:40:y:2014:i:c:p:1-15
    DOI: 10.1016/j.jairtraman.2014.04.004
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    References listed on IDEAS

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    Cited by:

    1. Karanki, Fecri & Lim, Siew Hoon, 2021. "Airport use agreements and cost efficiency of U.S. airports," Transport Policy, Elsevier, vol. 114(C), pages 68-77.
    2. Lim, Siew Hoon & Karanki, Fecri, 2020. "Airport use agreement types and input and output slacks: The case of U.S. airports," Research in Transportation Economics, Elsevier, vol. 84(C).
    3. Paraschi, Elen Paraskevi & Georgopoulos, Antonios & Papatheodorou, Andreas, 2020. "Abiotic determinants of airport performance: Insights from a global survey," Transport Policy, Elsevier, vol. 85(C), pages 33-53.
    4. repec:aud:audfin:v:20:y:2018:i:48:p:356 is not listed on IDEAS
    5. Ion Ionascu & Mihaela Iona?cu, 2018. "Business Models for Circular Economy and Sustainable Development: the Case of Lease Transactions," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(48), pages 356-356.
    6. Raghavan, Sunder & Yu, Chunyan, 2021. "Evaluating financial performance of commercial service airports in the United States," Journal of Air Transport Management, Elsevier, vol. 96(C).

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