IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v72y2018icp92-97.html
   My bibliography  Save this article

A note on the effects of the number of low-cost airlines on small tourist airports' efficiencies

Author

Listed:
  • Button, Kenneth
  • Kramberger, Tomaž
  • Grobin, Klemen
  • Rosi, Bojan

Abstract

This note considers the implications of the presence of low-cost airlines, and particularly their number, on the economic efficiency of tourist oriented, regional airports. Using a combined programming and econometric framework we examine the economic efficiency of twelve airports in North-east Italy, Slovenia, and Croatia over eight years and how this is affected by their use by low cost carriers. The evidence is that the presence of a greater number of such carriers can increase the economic efficiency of regional airports, and, thus in the longer-term, potential positively stimulate the flow of tourists to the airports' hinterland. This influence varies over time as the number of LCC fluctuates and also across the airports studied.

Suggested Citation

  • Button, Kenneth & Kramberger, Tomaž & Grobin, Klemen & Rosi, Bojan, 2018. "A note on the effects of the number of low-cost airlines on small tourist airports' efficiencies," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 92-97.
    • Handle: RePEc:eee:jaitra:v:72:y:2018:i:c:p:92-97
    DOI: 10.1016/j.jairtraman.2017.12.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096969971730114X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2017.12.003?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. Humphreys Ian & Ison Stephen & Francis Graham, 2006. "A Review of the Airport-Low Cost Airline Relationship," Review of Network Economics, De Gruyter, vol. 5(4), pages 1-8, December.
    2. Kenneth Button & Alvaro Costa & Carlos Cruz, 2006. "Ability to Recover Full Costs through Price Discrimination in Deregulated Scheduled Air Transport Markets," Transport Reviews, Taylor & Francis Journals, vol. 27(2), pages 213-230, August.
    3. Frédéric Dobruszkes, 2006. "An analysis of European low-cost airlines and their networks," ULB Institutional Repository 2013/95835, ULB -- Universite Libre de Bruxelles.
    4. Frédéric Dobruszkes & Véronique Mondou, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," ULB Institutional Repository 2013/142613, ULB -- Universite Libre de Bruxelles.
    5. Baumol, William J & Willig, Robert D, 1986. "Contestability: Developments since the Book," Oxford Economic Papers, Oxford University Press, vol. 38(0), pages 9-36, Suppl. No.
    6. Gillen, David & Lall, Ashish, 2004. "Competitive advantage of low-cost carriers: some implications for airports," Journal of Air Transport Management, Elsevier, vol. 10(1), pages 41-50.
    7. Klophaus, Richard & Conrady, Roland & Fichert, Frank, 2012. "Low cost carriers going hybrid: Evidence from Europe," Journal of Air Transport Management, Elsevier, vol. 23(C), pages 54-58.
    8. Mason, Keith J. & Morrison, William G., 2008. "Towards a means of consistently comparing airline business models with an application to the [`]low cost' airline sector," Research in Transportation Economics, Elsevier, vol. 24(1), pages 75-84.
    9. 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.
    10. Graham, Anne & Dennis, Nigel, 2010. "The impact of low cost airline operations to Malta," Journal of Air Transport Management, Elsevier, vol. 16(3), pages 127-136.
    11. Banker, Rajiv D. & Cooper, William W. & Seiford, Lawrence M. & Thrall, Robert M. & Zhu, Joe, 2004. "Returns to scale in different DEA models," European Journal of Operational Research, Elsevier, vol. 154(2), pages 345-362, April.
    12. Dobruszkes, Frédéric & Mondou, Véronique, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 23-34.
    13. Vanessa Liebert & Hans-Martin Niemeier, 2013. "A Survey of Empirical Research on the Productivity and Efficiency Measurement of Airports," Journal of Transport Economics and Policy, University of Bath, vol. 47(2), pages 157-189, May.
    14. Donzelli, Matteo, 2010. "The effect of low-cost air transportation on the local economy: Evidence from Southern Italy," Journal of Air Transport Management, Elsevier, vol. 16(3), pages 121-126.
    15. Frédéric Dobruszkes & Véronique Mondou, 2013. "Aviation liberalization as a means to promote international tourism: the EU–Morocco case," ULB Institutional Repository 2013/145790, ULB -- Universite Libre de Bruxelles.
    16. Ante Mandić & Marijana Teklić & Lidija Petrić, 2017. "RThe effects of the low cost carriers' presence on airport performance: evidence from Croatia," Tourism and Hospitality Management, University of Rijeka, Faculty of Tourism and Hospitality Management, vol. 23(1), pages 17-34, May.
    17. Davison, Lisa & Ryley, Tim, 2010. "Tourism destination preferences of low-cost airline users in the East Midlands," Journal of Transport Geography, Elsevier, vol. 18(3), pages 458-465.
    18. Martini, Gianmaria & Manello, Alessandro & Scotti, Davide, 2013. "The influence of fleet mix, ownership and LCCs on airports’ technical/environmental efficiency," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 37-52.
    19. Pyrialakou, V. Dimitra & Karlaftis, Matthew G. & Michaelides, Panayotis G., 2012. "Assessing operational efficiency of airports with high levels of low-cost carrier traffic," Journal of Air Transport Management, Elsevier, vol. 25(C), pages 33-36.
    20. Anna Bottasso & Maurizio Conti & Claudio Piga, 2013. "Low-cost carriers and airports' performance: empirical evidence from a panel of UK airports," Industrial and Corporate Change, Oxford University Press, vol. 22(3), pages 745-769, June.
    21. Martínez-Garcia, Esther & Ferrer-Rosell, Berta & Coenders, GermÃ, 2012. "Profile of business and leisure travelers on low cost carriers in Europe," Journal of Air Transport Management, Elsevier, vol. 20(C), pages 12-14.
    22. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    23. Gitto, Simone & Mancuso, Paolo, 2012. "Bootstrapping the Malmquist indexes for Italian airports," International Journal of Production Economics, Elsevier, vol. 135(1), pages 403-411.
    24. Rajiv D. Banker & Ram Natarajan, 2008. "Evaluating Contextual Variables Affecting Productivity Using Data Envelopment Analysis," Operations Research, INFORMS, vol. 56(1), pages 48-58, February.
    25. Steven A. Morrison, 2001. "Actual, Adjacent, and Potential Competition Estimating the Full Effect of Southwest Airlines," Journal of Transport Economics and Policy, University of Bath, vol. 35(2), pages 239-256, May.
    26. Graham, Anne, 2013. "Understanding the low cost carrier and airport relationship: A critical analysis of the salient issues," Tourism Management, Elsevier, vol. 36(C), pages 66-76.
    27. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2007. "Data Envelopment Analysis," Springer Books, Springer, edition 0, number 978-0-387-45283-8, June.
    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. Iyer, K. Chandrashekhar & Thomas, Nivea, 2021. "An econometric analysis of domestic air traffic demand in regional airports: Evidence from India," Journal of Air Transport Management, Elsevier, vol. 93(C).
    2. 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.
    3. Thomas, Nivea & Jha, Kumar Neeraj, 2022. "Structural efficiency assessment of regional airports: Lessons from India," Utilities Policy, Elsevier, vol. 79(C).
    4. Oliveira, Bruno F. & Oliveira, Alessandro V.M., 2022. "An empirical analysis of the determinants of network construction for Azul Airlines," Journal of Air Transport Management, Elsevier, vol. 101(C).
    5. B. F. Oliveira & A. V. M Oliveira, 2023. "An empirical analysis of the determinants of network construction for Azul Airlines," Papers 2312.05630, arXiv.org.

    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. Dobruszkes, Frédéric & Mondou, Véronique & Ghedira, Aymen, 2016. "Assessing the impacts of aviation liberalisation on tourism: Some methodological considerations derived from the Moroccan and Tunisian cases," Journal of Transport Geography, Elsevier, vol. 50(C), pages 115-127.
    2. à lvarez-Díaz, Marcos & González-Gómez, Manuel & Otero-Giráldez, María Soledad, 2019. "Low cost airlines and international tourism demand. The case of Porto's airport in the northwest of the Iberian Peninsula," Journal of Air Transport Management, Elsevier, vol. 79(C), pages 1-1.
    3. Wu, Chuntao & Hayashi, Yoshitsugu, 2014. "The effect of LCCs operations and scheduled services deregulation on air charter business in Japan," Journal of Transport Geography, Elsevier, vol. 41(C), pages 37-44.
    4. 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.
    5. Wu, Chuntao & Liao, Maozhu & Zhang, Yahua & Luo, Mingzhi & Zhang, Guoquan, 2020. "Network development of low-cost carriers in China's domestic market," Journal of Transport Geography, Elsevier, vol. 84(C).
    6. Wu, Chuntao & Jiang, Qiuyue & Yang, Hangjun, 2018. "Changes in cross-strait aviation policies and their impact on tourism flows since 2009," Transport Policy, Elsevier, vol. 63(C), pages 61-72.
    7. Stephen Pratt & Markus Schuckert, 2019. "Economic impact of low-cost carrier in a saturated transport market: Net benefits or zero-sum game?," Tourism Economics, , vol. 25(2), pages 149-170, March.
    8. Wu, Chuntao, 2016. "How aviation deregulation promotes international tourism in Northeast Asia: A case of the charter market in Japan," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 260-271.
    9. Choo, Yap Yin & Oum, Tae Hoon, 2013. "Impacts of low cost carrier services on efficiency of the major U.S. airports," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 60-67.
    10. 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.
    11. Fageda, Xavier & Jiménez, Juan Luis & Perdiguero, Jordi & Marrero, Kevin, 2017. "Does market exit of a network airline affect airline prices and frequencies on tourist routes?," Tourism Management, Elsevier, vol. 61(C), pages 465-471.
    12. Jimenez, Edgar & Suau-Sanchez, Pere, 2020. "Reinterpreting the role of primary and secondary airports in low-cost carrier expansion in Europe," Journal of Transport Geography, Elsevier, vol. 88(C).
    13. Vieira, José & Câmara, Gualter & Silva, Francisco & Santos, Carlos, 2019. "Airline choice and tourism growth in the Azores," Journal of Air Transport Management, Elsevier, vol. 77(C), pages 1-6.
    14. Bernardo, Valeria & Fageda, Xavier, 2017. "The effects of the Morocco-European Union open skies agreement: A difference-in-differences analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 98(C), pages 24-41.
    15. Riccardo Gianluigi Serio & Maria Michela Dickson & Diego Giuliani & Giuseppe Espa, 2022. "Toward environmental sustainability: an empirical study on airports efficiency," Papers 2210.02736, arXiv.org, revised Mar 2024.
    16. Hong Tsui, Kan Wai, 2017. "Does a low-cost carrier lead the domestic tourism demand and growth of New Zealand?," Tourism Management, Elsevier, vol. 60(C), pages 390-403.
    17. 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).
    18. Albalate, Daniel & Fageda, Xavier, 2016. "High speed rail and tourism: Empirical evidence from Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 174-185.
    19. Daniel Albalate del sol, 2015. "Evaluating HSR availability on Tourism: Evidence from Spanish Provinces and Cities," ERSA conference papers ersa15p288, European Regional Science Association.
    20. Lohmann, Gui & Vianna, Camila, 2016. "Air route suspension: The role of stakeholder engagement and aviation and non-aviation factors," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 199-210.

    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:72:y:2018:i:c:p:92-97. 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.