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Ownership Forms Matter for Airport Efficiency: A Stochastic Frontier Investigation of Worldwide Airports

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  • Oum, Tae H.
  • Yan, Jia
  • Yu, Chunyan

Abstract

We study the effects of ownership forms on airports’ cost efficiency by applying stochastic frontier analysis to a panel data of the world’s major airports. Our key findings are: (a) Countries considering privatization of airports should transfer majority shares to the private sector; (b) Mixed ownership of airport with a government majority should be avoided in favor of even 100% government owned public firm; (c) U.S. airports operated by port authorities should consider to transfer ownership/management to independent airport authorities; and (d) Privatization of one or more airports in cities with multiple airports would improve the efficiency of all airports.

Suggested Citation

  • Oum, Tae H. & Yan, Jia & Yu, Chunyan, 2009. "Ownership Forms Matter for Airport Efficiency: A Stochastic Frontier Investigation of Worldwide Airports," 50th Annual Transportation Research Forum, Portland, Oregon, March 16-18, 2009 207604, Transportation Research Forum.
    • Handle: RePEc:ags:ndtr09:207604
    DOI: 10.22004/ag.econ.207604
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