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Econometric evidence on the profits and revenues of Indian regional airports

Author

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  • Thomas, Nivea
  • Jha, Kumar Neeraj

Abstract

The low profitability of regional airports is a major impediment to the development of regional aviation. Without subsidies, regional airports struggle to subsist financially. This paper elucidates the various revenue and expenditure heads of Indian airports and discusses the financial status of regional airports. This study also uses panel data from 42 Indian regional airports from 2014–2015 to 2018–2019 to examine the effect of possible determinants on regional airport profits and revenue. Applying Hausman-Taylor regression, the findings indicate that regional airports can expand their profits and revenue primarily by increasing domestic and international passenger flow. Lower levels of seasonality contribute to the airport revenue. Airport capacity utilisation has a favourable and considerable impact on airport profits but not airport revenue. Civil enclaves were found to be profitable. Additionally, the research findings emphasise the unpredictable nature of low-cost carriers and provide managerial implications to policymakers and regional airport operators.

Suggested Citation

  • Thomas, Nivea & Jha, Kumar Neeraj, 2024. "Econometric evidence on the profits and revenues of Indian regional airports," Journal of Air Transport Management, Elsevier, vol. 115(C).
    • Handle: RePEc:eee:jaitra:v:115:y:2024:i:c:s096969972300176x
    DOI: 10.1016/j.jairtraman.2023.102533
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