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The Impacts of Airport Centrality in the EU Network and Inter- Airport Competition on Airport Efficiency

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Listed:
  • Malighetti, G
  • Martini, G
  • Paleari, S
  • Redondi, R

Abstract

In this paper we study the relationship between airport efficiency and two factors: an airport’s centrality in the EU network, and the intensity of competition from alternative airports in the same catchment area. We apply a two-stage econometric model based on the Simar & Wilson (2007) bootstrap procedure to a balanced sample of 57 European airports. We also design and compute our own measures of airport centrality and competition. The results show that efficiency is positively related to centrality in the European network, as measured by a weighted sum of minimal paths passing through the airport in question. The intensity of competition between airports also has a positive effect on efficiency. Our analysis suggests that air transportation policies should focus on increasing competition within important catchment areas (e.g., by investing in infrastructure facilitating access to alternative airports) and enhancing the connectivity of the EU network (e.g., by subsidizing new point-to-point connections between airports with capacity to spare).

Suggested Citation

  • 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.
  • Handle: RePEc:pra:mprapa:17673
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    References listed on IDEAS

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    Cited by:

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    2. Suau-Sanchez, Pere & Voltes-Dorta, Augusto & Rodríguez-Déniz, Héctor, 2015. "Regulatory airport classification in the US: The role of international markets," Transport Policy, Elsevier, vol. 37(C), pages 157-166.
    3. Güner, Samet & Cebeci, Halil İbrahim & Antunes, Jorge Junio Moreira & Wanke, Peter F., 2021. "Sustainable efficiency drivers in Eurasian airports: Fuzzy NDEA approach based on Shannon's entropy," Journal of Air Transport Management, Elsevier, vol. 92(C).
    4. 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.
    5. Zhang, Yahua & Zhang, Anming & Zhu, Zhenran & Wang, Kun, 2017. "Connectivity at Chinese airports: The evolution and drivers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 490-508.
    6. Ofelia Betancor & María Paz Espinosa, 2015. "Privatización, competencia y regulación aeroportuaria:experiencia internacional," Working Papers 2015-03, FEDEA.
    7. Tony H. Grubesic & Timothy C. Matisziw, 2011. "World Cities and Airline Networks," Chapters, in: Ben Derudder & Michael Hoyler & Peter J. Taylor & Frank Witlox (ed.), International Handbook of Globalization and World Cities, chapter 10, Edward Elgar Publishing.

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    More about this item

    Keywords

    air transportation; efficiency; network centrality; inter – airports competition.;
    All these keywords.

    JEL classification:

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

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