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Two faces of airport business: A non-parametric analysis of the Italian airport industry

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  • Gitto, Simone
  • Mancuso, Paolo

Abstract

In this paper, we use data envelopment analysis to evaluate the impact of regulatory reforms on the technical efficiency of 28 Italian airports between 2000 and 2006. The analysis utilizes two model specifications for airport activities: the first includes aeronautical activities, and the second both aeronautical and non-aeronautical activities. This allows evaluation of the impact of commercial activities on overall airport efficiency. The results show that different model specifications of airport activities can substantially affect policy conclusions; and that major sources of efficiency gains can be obtained from airside activities, private-capital inflows to airport management companies, types of concession agreements and the liberalization of handling services.

Suggested Citation

  • Gitto, Simone & Mancuso, Paolo, 2012. "Two faces of airport business: A non-parametric analysis of the Italian airport industry," Journal of Air Transport Management, Elsevier, vol. 20(C), pages 39-42.
  • Handle: RePEc:eee:jaitra:v:20:y:2012:i:c:p:39-42
    DOI: 10.1016/j.jairtraman.2011.11.003
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    References listed on IDEAS

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    1. Curi, Claudia & Gitto, Simone & Mancuso, Paolo, 2010. "The Italian airport industry in transition: a performance analysis," Journal of Air Transport Management, Elsevier, vol. 16(4), pages 218-221.
    2. Leopold Simar & Valentin Zelenyuk, 2006. "On Testing Equality of Distributions of Technical Efficiency Scores," Econometric Reviews, Taylor & Francis Journals, vol. 25(4), pages 497-522.
    3. Tsekeris, Theodore, 2011. "Greek airports: Efficiency measurement and analysis of determinants," Journal of Air Transport Management, Elsevier, vol. 17(2), pages 140-142.
    4. 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.
    5. Tae Hoon Oum & Anming Zhang & Yimin Zhang, 2004. "Alternative Forms of Economic Regulation and their Efficiency Implications for Airports," Journal of Transport Economics and Policy, University of Bath, vol. 38(2), pages 217-246, May.
    6. 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.
    7. 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.
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    Citations

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    Cited by:

    1. Pavlyuk, Dmitry, 2016. "Implication of spatial heterogeneity for airports' efficiency estimation," Research in Transportation Economics, Elsevier, vol. 56(C), pages 15-24.
    2. Randrianarisoa, Laingo Manitra & Bolduc, Denis & Choo, Yap Yin & Oum, Tae Hoon & Yan, Jia, 2015. "Effects of corruption on efficiency of the European airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 79(C), pages 65-83.
    3. Mancuso, Paolo, 2014. "An analysis of the competition that impinges on the Milan–Rome intercity passenger transport link," Transport Policy, Elsevier, vol. 32(C), pages 42-52.
    4. 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.
    5. Fragoudaki, Alexandra & Giokas, Dimitriοs & Glyptou, Kyriaki, 2016. "Efficiency and productivity changes in Greek airports during the crisis years 2010–2014," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 306-315.
    6. Ananda, Jayanath & Gitto, Simone & Mancuso, Paolo, 2013. "Ownership, Productivity Change in the Australian Urban Water Sector: a Bootstrap Malmquist indices approach," MPRA Paper 50384, University Library of Munich, Germany.
    7. Fragoudaki, Alexandra & Giokas, Dimitris, 2016. "Airport performance in a tourism receiving country: Evidence from Greece," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 80-89.
    8. Vogel, Hans-Arthur & Graham, Anne, 2013. "Devising airport groupings for financial benchmarking," Journal of Air Transport Management, Elsevier, vol. 30(C), pages 32-38.
    9. Bilotkach, Volodymyr & Gitto, Simone & Jovanović, Radosav & Mueller, Juergen & Pels, Eric, 2015. "Cost-efficiency benchmarking of European air navigation service providers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 50-60.
    10. repec:eee:juipol:v:50:y:2018:i:c:p:175-193 is not listed on IDEAS
    11. Barros, Carlos P. & Bin Liang, Qi & Peypoch, Nicolas, 2013. "The efficiency of French regional airports: An inverse B-convex analysis," International Journal of Production Economics, Elsevier, vol. 141(2), pages 668-674.
    12. Edgar Ferreira Damacena & Peter Fernandes Wanke & Henrique Luiz Correa, 2016. "Infrastructure expansion in Brazilian airports: slack analysis using a distance friction minimization approach," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(2), pages 181-198, June.
    13. Abbruzzo, Antonino & Fasone, Vincenzo & Scuderi, Raffaele, 2016. "Operational and financial performance of Italian airport companies: A dynamic graphical model," Transport Policy, Elsevier, vol. 52(C), pages 231-237.
    14. Assaf, A. George & Gillen, David & Tsionas, Efthymios G., 2014. "Understanding relative efficiency among airports: A general dynamic model for distinguishing technical and allocative efficiency," Transportation Research Part B: Methodological, Elsevier, vol. 70(C), pages 18-34.
    15. Liu, Dan, 2016. "Measuring aeronautical service efficiency and commercial service efficiency of East Asia airport companies: An application of Network Data Envelopment Analysis," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 11-22.
    16. De Nicola, Arianna & Gitto, Simone & Mancuso, Paolo, 2013. "Airport quality and productivity changes: A Malmquist index decomposition assessment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 58(C), pages 67-75.

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