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Can flexibility make the difference to an airport's productivity? An assessment using cluster analysis

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  • Magalhães, Liliana
  • Reis, Vasco
  • Macário, Rosário

Abstract

Airport managers are facing a tough challenge: how to maintain a costly infrastructure with a long life-cycle in an increasingly volatile market? Traditional airport development approaches, based on master plans are no longer adequate. Flexibility has been advanced as a possible solution. We can define flexibility as the capacity of an object to accommodate external pressures while still keeping its functions. The literature on flexibility is limited and the field remains relatively unexplored. One relevant topic has to do with the actual impact of flexibility on an airport's overall productivity. Although the object of substantial discussion, thus far no evidence has been gathered. The objective of this study was to contribute to remedying this gap. We applied a cluster analysis to a set of 140 North American, European and Asian airports, of which 20 are identified in the literature as being flexible. We considered a total of 14 financial and productivity indicators: if the hypothesis holds true, then the flexible airports would be less affected than the others by economic recessions or other external changes. The results do not reveal any visible differences between flexible and non-flexible airports. Despite these results, our study raises important new questions about the nature and the actual effects of flexibility.

Suggested Citation

  • Magalhães, Liliana & Reis, Vasco & Macário, Rosário, 2015. "Can flexibility make the difference to an airport's productivity? An assessment using cluster analysis," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 90-101.
    • Handle: RePEc:eee:jaitra:v:47:y:2015:i:c:p:90-101
    DOI: 10.1016/j.jairtraman.2015.05.003
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    References listed on IDEAS

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    1. Gil, Nuno & Tether, Bruce S., 2011. "Project risk management and design flexibility: Analysing a case and conditions of complementarity," Research Policy, Elsevier, vol. 40(3), pages 415-428, April.
    2. Morlok, Edward K. & Chang, David J., 2004. "Measuring capacity flexibility of a transportation system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(6), pages 405-420, July.
    3. Suárez, Freddy F. & Cusumano, Michael A., 1954- & Fine, Charles H., 1991. "Flexibility and performance : a literature critique and strategic framework," Working papers 3298-91., Massachusetts Institute of Technology (MIT), Sloan School of Management.
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    Cited by:

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    6. Singh, D.P. & Dalei, Narendra N. & Raju, T. Bangar, 2016. "Forecasting investment and capacity addition in Indian airport infrastructure: Analysis from post-privatization and post-economic regulation era," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 218-225.

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