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Business performance of airports: Non-aviation revenues and their determinants

Author

Listed:
  • Fasone, Vincenzo
  • Kofler, Lukas
  • Scuderi, Raffaele

Abstract

Management of non-core commercial activities has become a key issue amongst the leverages for improving modern airport industry. Today airports have increased dramatically their dependence on non-aeronautical revenues, which on average account for half of all revenues with this share being highly heterogeneous across regions and airports. Using a dataset of German airports, this paper discusses the improvement of commercial revenues by exploring its determinants. Previous contributions assessed the impact of a selected set of variables non-aviation revenues. Such approach was mainly the effect of multicollinearity, as the majority of relevant variables are strongly correlated to the size of the structures. We address this issue by using ridge regression and partial least squares. Results suggest the potential conflict of non-aviation revenues per passenger and per square meter with the need to expand the number of passengers.

Suggested Citation

  • Fasone, Vincenzo & Kofler, Lukas & Scuderi, Raffaele, 2016. "Business performance of airports: Non-aviation revenues and their determinants," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 35-45.
  • Handle: RePEc:eee:jaitra:v:53:y:2016:i:c:p:35-45
    DOI: 10.1016/j.jairtraman.2015.12.012
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    References listed on IDEAS

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    1. repec:eee:trapol:v:61:y:2018:i:c:p:123-131 is not listed on IDEAS
    2. repec:eee:jaitra:v:64:y:2017:i:pa:p:77-85 is not listed on IDEAS
    3. repec:fan:macoma:v:html10.3280/maco2017-002005 is not listed on IDEAS
    4. repec:eee:jaitra:v:70:y:2018:i:c:p:113-125 is not listed on IDEAS
    5. repec:eee:transa:v:101:y:2017:i:c:p:61-72 is not listed on IDEAS
    6. 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.

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