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Airport efficiency in Pakistan - A Data Envelopment Analysis with weight restrictions

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  • Ennen, David
  • Batool, Irem

Abstract

This paper investigates 12 major airports in Pakistan for potential cost inefficiencies. We identify inefficiencies by benchmarking the productive performance of airports using Data Envelopment Analysis (DEA) and data for 2012. To improve the ability of DEA to differentiate performance levels, we impose restrictions on the possible weights of inputs and outputs in the DEA procedure. The definition of these weight restrictions is based on additional information on feasible production trade-offs and relative input prices. To the best of our knowledge, this paper provides the first application of predefined weight restrictions in a DEA analysis of airport efficiency. The results suggest that there are cost inefficiencies at several airports, which are mainly caused by overstaffing and overinvestment in capacity. Furthermore, we find that the operational scale of most airports is inefficiently small, so that increases in traffic will result in declining unit costs.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jaitra:v:69:y:2018:i:c:p:205-212
    DOI: 10.1016/j.jairtraman.2018.02.007
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    Cited by:

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    4. Muslim, Syed Askari & Ahmad, Yasir & Abbas, Shahbaz, 2024. "Is it worthwhile to manage airport efficiency through privatization in a developing country? A case study of Pakistani airports," Journal of Air Transport Management, Elsevier, vol. 115(C).
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    6. Mehdi Shamohammadi & Yonghwa Park & Jong Hae Choi & Oh Kyoung Kwon, 2022. "Exploring the Performance of International Airports in the Pre- and Post-COVID-19 Era: Evidence from Incheon International Airport," Sustainability, MDPI, vol. 14(7), pages 1-22, April.
    7. Güner, Samet & İbrahim Cebeci, Halil, 2021. "Multi-period efficiency analysis of major European and Asian airports under fixed proportion technologies," Transport Policy, Elsevier, vol. 107(C), pages 24-42.
    8. Kaya, Gizem & Aydın, Umut & Karadayı, Melis Almula & Ülengin, Füsun & Ülengin, Burç & İçken, Ayhan, 2022. "Integrated methodology for evaluating the efficiency of airports: A case study in Turkey," Transport Policy, Elsevier, vol. 127(C), pages 31-47.
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    10. Izhar Hussain Shah & Hung‐Suck Park, 2021. "Chronological change of resource metabolism and decarbonization patterns in Pakistan: Perspectives from a typical developing country," Journal of Industrial Ecology, Yale University, vol. 25(1), pages 144-161, February.
    11. Yen, Barbara T.H. & Li, Jun-Sheng, 2022. "Route-based performance evaluation for airlines – A metafrontier data envelopment analysis approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 162(C).

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    More about this item

    Keywords

    Airport; Efficiency; Benchmarking; Data Envelopment Analysis; Pakistan;
    All these keywords.

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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