The Efficiency of European Airports: Do the Importance in the EU Network and the Intensity of Competition Matter?
In this paper we study the efficiency of European airports by applying a DEA model to 57 airports. The sample covers 95% of all the airports with a traffic of at least 5 millions passengers (yearly). We find that largest airports (with more than 10 millions passengers) are more efficient, while airports classified by the European Commission as national have spare capacity and should improve their performances. Largest airports have decreasing returns to scale, while national ones will get a reduction in their average costs if they increase their size of operation. Moreover we investigated the determinants of the estimated efficiency scores. The Tobit regression shows that efficiency is positively related with airport’s connectivity index in the European network (i.e. airports with better connections at the network are more efficient) and with the intensity of competition between airports (i.e. airports with nearby competitors on several destinations tend to be more efficient). These results imply that policy makers (in regulating airports’ fares and subsidizing development plans) and managers (in evaluating their assets utilization) should take into account that a well connected destinations map and the presence of indirect competition coming from other airports can improve the performances in the management of European airports.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: viale Marconi 5, 24044 Dalmine|
Web page: http://www.unibg.it/struttura/en_struttura.asp?cerca=en_dige_intro
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:brh:wpaper:0804. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (University of Bergamo Library)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.