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The Impact of Airport Managerial Type and Airline Market Share on Airport Efficiency

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  • Jae Hee Park

    (Business School, Korea Aerospace University, Gyeonggi 10540, Korea)

  • Ji Hee Kim

    (Business School, Korea Aerospace University, Gyeonggi 10540, Korea)

Abstract

This paper investigates the impact of airport managerial type and airline market structure on airport efficiency. It explores whether the market shares of the largest airlines differ depending on the managerial type of the airport. In this study, the efficiency scores for the sample airport are measured through DEA (Data Envelop Analysis), and the impacts of the airport managerial type and dominant carrier market share on airport efficiency are subsequently estimated through CEM (Coarsened Exact Matching). This paper concludes that group airports are more efficient than the standalone airports, and the market shares of the largest airlines have a positive impact on enhancing airport efficiency. In addition, the market shares of the largest airlines are found to be higher for group airports than for standalone airports. These findings can serve as practical guidelines for governments and airport authorities by suggesting that efficiency improves when multiple standalone airports are operated as a group through the M&A of airports or the establishment of airport operation agencies. While facing unprecedented challenges from the spread of COVID 19, this paper also suggests that an increase in airline market share through airport–airline cooperation has a positive impact on airport efficiency.

Suggested Citation

  • Jae Hee Park & Ji Hee Kim, 2021. "The Impact of Airport Managerial Type and Airline Market Share on Airport Efficiency," Sustainability, MDPI, vol. 13(2), pages 1-16, January.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:2:p:981-:d:482929
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