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An Empirical Investigation on the Efficiency, Capacity Ownership of Italian Airports

Author

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  • Paolo Malighetti

    (University of Bergamo and ICCSAI)

  • Gianmaria Martini

    (University of Bergamo and ICCSAI)

  • Stefano Paleari

    (University of Bergamo and ICCSAI)

  • Renato Redondi

    (University of Brescia and ICCSAI)

Abstract

In this paper we study the efficiency of Italian airports applying a DEA model to 34 airports. We find that large airports are more efficient than domestic and regional ones, i.e. small airports have spare capacity since they are more distant from the frontier than large airports. The Tobit regression on the estimated DEA scores shows that efficiency is positively related with the hub premium and with privatisation. Hence we suggest that privatisation incentives to invest in large airports (close to saturation) and development plans to improve the small airports may form the benchmarks of Italian short-run air transportation policy.

Suggested Citation

  • Paolo Malighetti & Gianmaria Martini & Stefano Paleari & Renato Redondi, 2007. "An Empirical Investigation on the Efficiency, Capacity Ownership of Italian Airports," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 157-188, January-F.
  • Handle: RePEc:rpo:ripoec:v:97:y:2007:i:1:p:157-188
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    References listed on IDEAS

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    Cited by:

    1. Malighetti, G & Martini, G & Paleari, S & Redondi, R, 2009. "The Impacts of Airport Centrality in the EU Network and Inter- Airport Competition on Airport Efficiency," MPRA Paper 17673, University Library of Munich, Germany.
    2. lo Storto, Corrado, 2018. "The analysis of the cost-revenue production cycle efficiency of the Italian airports: A NSBM DEA approach," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 77-85.
    3. D’Alfonso, Tiziana & Daraio, Cinzia & Nastasi, Alberto, 2015. "Competition and efficiency in the Italian airport system: new insights from a conditional nonparametric frontier analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 20-38.
    4. Tsui, Wai Hong Kan & Gilbey, Andrew & Balli, Hatice Ozer, 2014. "Estimating airport efficiency of New Zealand airports," Journal of Air Transport Management, Elsevier, vol. 35(C), pages 78-86.
    5. 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.
    6. Liu, Dan, 2017. "Evaluating the multi-period efficiency of East Asia airport companies," Journal of Air Transport Management, Elsevier, vol. 59(C), pages 71-82.
    7. Huynh, Triet Minh & Kim, Gyuseung & Ha, Hun-Koo, 2020. "Comparative analysis of efficiency for major Southeast Asia airports: A two-stage approach," Journal of Air Transport Management, Elsevier, vol. 89(C).
    8. Gianmaria Martini & Davide Scotti, 2009. "Potere di mercato e distribuzione dei profitti nella filiera del trasporto aereo," Working Papers 0906, Department of Economics and Technology Management, University of Bergamo.
    9. Scotti, Davide & Malighetti, Paolo & Martini, Gianmaria & Volta, Nicola, 2012. "The impact of airport competition on technical efficiency: A stochastic frontier analysis applied to Italian airport," Journal of Air Transport Management, Elsevier, vol. 22(C), pages 9-15.
    10. Fernandes, Elton & Pacheco, Ricardo Rodrigues, 2018. "Managerial performance of airports in Brazil before and after concessions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 245-257.
    11. Jimenez, Edgar & Claro, João & Pinho de Sousa, Jorge & de Neufville, Richard, 2017. "Dynamic evolution of European airport systems in the context of Low-Cost Carriers growth," Journal of Air Transport Management, Elsevier, vol. 64(PA), pages 68-76.
    12. Voltes-Dorta, Augusto & Pagliari, Romano, 2012. "The impact of recession on airports' cost efficiency," Transport Policy, Elsevier, vol. 24(C), pages 211-222.
    13. Suau-Sanchez, Pere & Burghouwt, Guillaume & Pallares-Barbera, Montserrat, 2014. "An appraisal of the CORINE land cover database in airport catchment area analysis using a GIS approach," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 12-16.
    14. Fasone, Vincenzo & Maggiore, Pasquale & Scuderi, Raffaele, 2014. "Airport ownership and financial performance: Evidence from Italy," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 163-168.
    15. Kan Tsui, Wai Hong & Balli, Hatice Ozer & Gilbey, Andrew & Gow, Hamish, 2014. "Operational efficiency of Asia–Pacific airports," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 16-24.
    16. Paraschi, Elen Paraskevi & Georgopoulos, Antonios & Papatheodorou, Andreas, 2020. "Abiotic determinants of airport performance: Insights from a global survey," Transport Policy, Elsevier, vol. 85(C), pages 33-53.
    17. Gitto, Simone & Mancuso, Paolo, 2012. "Bootstrapping the Malmquist indexes for Italian airports," International Journal of Production Economics, Elsevier, vol. 135(1), pages 403-411.
    18. Nicolò Avogadro & Sebastian Birolini & Mattia Cattaneo & Paolo Malighetti & Chiara Morlotti & Renato Redondi, 2020. "Yardstick Regulation in a Competitive Context? The Case of the Italian Airports," Competition and Regulation in Network Industries, , vol. 21(3), pages 244-274, September.
    19. Martini, Gianmaria & Scotti, Davide & Viola, Domenico & Vittadini, Giorgio, 2020. "Persistent and temporary inefficiency in airport cost function: An application to Italy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 999-1019.
    20. Yu, Ming-Miin & Chen, Li-Hsueh & Chiang, Hui, 2017. "The effects of alliances and size on airlines’ dynamic operational performance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 197-214.
    21. Sismanidou, Athina & Tarradellas, Joan & Bel, Germà & Fageda, Xavier, 2013. "Estimating potential long-haul air passenger traffic in national networks containing two or more dominant cities," Journal of Transport Geography, Elsevier, vol. 26(C), pages 108-116.
    22. 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.
    23. 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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    More about this item

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L59 - Industrial Organization - - Regulation and Industrial Policy - - - Other
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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