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Airport governance reform: a strategic management perspective

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  • Carney, Michael
  • Mew, Keith

Abstract

Reform of airport governance structures through corporatization, privatization and other approaches to commercialization is intended to attain a number benefits for air transport system stakeholders. While reformers often want managers to bring a commercial and strategic orientation to the operation of an airport they often create regulatory and governance structures that inhibit such an approach. This paper shows how different modes of governance tend to create trade-offs between stakeholder outcomes. It is suggested that different governance modes embody constraints and incentives that determines the type and quantity of managerial and financial resources that private sector agents will bring to the operation of airports. Additionally, the effectiveness of particular governance modes depends upon national institutional context.

Suggested Citation

  • Carney, Michael & Mew, Keith, 2003. "Airport governance reform: a strategic management perspective," Journal of Air Transport Management, Elsevier, vol. 9(4), pages 221-232.
    • Handle: RePEc:eee:jaitra:v:9:y:2003:i:4:p:221-232
    DOI: 10.1016/S0969-6997(03)00003-6
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    References listed on IDEAS

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    3. Freathy, Paul, 2004. "The commercialisation of European airports: successful strategies in a decade of turbulence?," Journal of Air Transport Management, Elsevier, vol. 10(3), pages 191-197.
    4. Gitto, Simone & Mancuso, Paolo, 2010. "Airport efficiency: a DEA two stage analysis of the Italian commercial airports," MPRA Paper 34366, University Library of Munich, Germany, revised 10 Oct 2010.
    5. Leonard Wang & Tien-Der Han, 2015. "Better governance matters optimal privatization policy," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 189-206, December.
    6. Tavalaei, M. Mahdi & Santalo, Juan, 2019. "Pure versus hybrid competitive strategies in the airport industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 444-455.
    7. Lyon, David & Francis, Graham, 2006. "Managing New Zealand's airports in the face of commercial challenges," Journal of Air Transport Management, Elsevier, vol. 12(5), pages 220-226.
    8. 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.
    9. Christopher L. Atkinson, 2020. "The Federal Aviation Administration Airport Improvement Program: Who Benefits?," Public Organization Review, Springer, vol. 20(4), pages 789-805, December.
    10. Daniel Albalate & Germà Bel & Xavier Fageda, 2012. "“Beyond pure public and pure private management models: Mixed firms in the European Airport Industry”," IREA Working Papers 201221, University of Barcelona, Research Institute of Applied Economics, revised Dec 2012.
    11. Fasone, Vincenzo & Maggiore, Pasquale & Scuderi, Raffaele, 2014. "Airport ownership and financial performance: Evidence from Italy," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 163-168.
    12. Rolim, Paula S.W. & Bettini, Humberto F.A.J. & Oliveira, Alessandro V.M., 2016. "Estimating the impact of airport privatization on airline demand: AÂ regression-based event study," Journal of Air Transport Management, Elsevier, vol. 54(C), pages 31-41.
    13. Herold, David M. & Wilde, Simon. & Wojtarowicz, Natalie, 2014. "How to Attract Air Freight Business: Defining Critical Success Factors for Regional Airports," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Next Generation Supply Chains: Trends and Opportunities. Proceedings of the Hamburg International Conference of Logistics (HICL), Vol. 18, volume 18, pages 273-288, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    14. Stevens, Nicholas & Baker, Douglas & Freestone, Robert, 2010. "Airports in their urban settings: towards a conceptual model of interfaces in the Australian context," Journal of Transport Geography, Elsevier, vol. 18(2), pages 276-284.
    15. 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.
    16. 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.
    17. Karanki, Fecri & Lim, Siew Hoon, 2020. "The effects of use agreements on airport efficiency," Journal of Air Transport Management, Elsevier, vol. 84(C).
    18. Torres, E. & Domínguez, J.S. & Valdés, L. & Aza, R., 2005. "Passenger waiting time in an airport and expenditure carried out in the commercial area," Journal of Air Transport Management, Elsevier, vol. 11(6), pages 363-367.
    19. 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.
    20. Aasheesh Dixit & Patanjal Kumar & Suresh Jakhar, 2021. "Airport-Airline Coordination with Economic, Environmental and Social Considerations," Papers 2110.11694, arXiv.org.
    21. Arblaster, Margaret & Hooper, Paul, 2015. "Light handed regulation–Can it play a role in the developing world?," Transport Policy, Elsevier, vol. 43(C), pages 32-41.
    22. Bettini, Humberto F.A.J. & Oliveira, Alessandro V.M., 2016. "Two-sided platforms in airport privatization," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 262-278.
    23. Alda Metrass Mendes & Richard de Neufville & Ã lvaro Costa, 2011. "Air Accessibility In Northern Canada: Prospects And Lessons For Remoter Communities," ERSA conference papers ersa11p1647, European Regional Science Association.

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