Journal of Korean Society for Quality Management (품질경영학회지)

Korean Society for Quality Management (한국품질경영학회)
권호 표지
DOI QR코드

DOI QR Code

An analysis of the performance of global major airports using two-stage network DEA model

2단계 네트워크 DEA를 이용한 세계 주요 공항 성과 분석

  • Yoo, Seuck-Cheun (Dongguk Business School, Dongguk University-Seoul) ;
  • Meng, Jie (Dongguk Business School, Dongguk University-Seoul) ;
  • Lim, Sungmook (Dongguk Business School, Dongguk University-Seoul)
  • 유석천 (동국대학교-서울캠퍼스 경영대학 경영학과) ;
  • 맹결 (동국대학교-서울캠퍼스 경영대학 경영학과) ;
  • 임성묵 (동국대학교-서울캠퍼스 경영대학 경영학과)
  • Received : 2017.02.22
  • Accepted : 2017.02.26
  • Published : 2017.03.31
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose: The performance of global major airports is evaluated and several research questions are examined relative to the measures characterizing airport performance. Methods: The two-stage internal structure of airport performance is considered by decomposing it into physical operations and revenue generation. In the physical operations stage, operating costs, number of runways, terminal area and number of employees are used as inputs, while passenger throughput, cargo throughput and aircraft movements are taken as outputs. Subsequently, in the revenue generation stage, the outputs from the preceding stage are taken as inputs, while revenue is used as output. Results: Based upon this two-stage modeling of airport performance, a multiplicative two-stage network data envelopment analysis model is employed to calculate the overall and stage efficiencies of 59 airports using the recent data in the 2014 Airport Benchmarking Report published by the Air Transport Research Society. Several internal and external factors are also considered such as airport size, airport geographical location, proportion of international passengers, ownership (listed or not) and management style, and statistical analysis is performed to examine their impacts on airport performance. Conclusion: It is shown that the airports exhibit statistically significant difference across regions, and also some statistically significant factors affecting airport performance are identified.

Keywords

References

  1. Assaf, A. 2009. "Accounting for size in efficiency comparisons of airports." Journal of Air Transport Management 15(5):256-258. https://doi.org/10.1016/j.jairtraman.2008.10.004
  2. Banker, R. D., Charnes, A., and Cooper, W. W. 1984. "Some models for estimating technical and scale inefficiencies in data envelopment analysis." Management science 30(9):1078-1092. https://doi.org/10.1287/mnsc.30.9.1078
  3. Barros, C. P., and Dieke, P. U. 2007. "Performance evaluation of Italian airports: A data envelopment analysis." Journal of Air Transport Management 13(4):184-191. https://doi.org/10.1016/j.jairtraman.2007.03.001
  4. Bazargan, M., and Vasigh, B. 2003. "Size versus efficiency: a case study of US commercial airports." Journal of Air Transport Management 9(3):187-193. https://doi.org/10.1016/S0969-6997(02)00084-4
  5. Castelli, L., Pesenti, R., and Ukovich, W. 2010. "A classification of DEA models when the internal structure of the decision making units is considered." Annals of Operations Research 173(1):207-235. https://doi.org/10.1007/s10479-008-0414-2
  6. Charnes, A., Cooper, W. W., and Rhodes, E. 1978. "Measuring the efficiency of decision making units." European journal of operational research 2(6):429-444. https://doi.org/10.1016/0377-2217(78)90138-8
  7. Chi-Lok, A. Y., and Zhang, A. 2009. "Effects of competition and policy changes on Chinese airport productivity:An empirical investigation." Journal of Air Transport Management 15(4):166-174. https://doi.org/10.1016/j.jairtraman.2008.09.003
  8. Chilingerian, J. A., and Sherman, H. D. 2011. Health-care applications: from hospitals to physicians, from productive efficiency to quality frontiers. In Handbook on data envelopment analysis, US: Springer, 445-493.
  9. Cook, W. D., Liang, L., and Zhu, J. 2010. "Measuring performance of two-stage network structures by DEA: a review and future perspective." Omega 38(6):423-430. https://doi.org/10.1016/j.omega.2009.12.001
  10. Farrell, M. J. 1957. "The measurement of productive efficiency." Journal of the Royal Statistical Society. Series A(General) 120(3):253-290. https://doi.org/10.2307/2343100
  11. Fung, M. K. Y., Chow, C. K. W., Van Hui, Y., and Law, J. S. 2008a. "Measuring the efficiency of airports in China with the DEA and endogenous-weight TFP methods." International Journal of Transport Economics/Rivista internazionale di economia dei trasporti:45-73.
  12. Fung, M. K. Y., Wan, K. K. H., Van Hui, Y., and Law, J. S. 2008b. "Productivity changes in Chinese airports 1995-2004." Transportation Research Part E: Logistics and Transportation Review 44(3):521-542. https://doi.org/10.1016/j.tre.2007.01.003
  13. Gillen, D., and Lall, A. 1997. "Developing measures of airport productivity and performance: an application of data envelopment analysis." Transportation Research Part E: Logistics and Transportation Review 33(4):261-273. https://doi.org/10.1016/S1366-5545(97)00028-8
  14. Kao, C. 2014. "Network data envelopment analysis: A review." European Journal of Operational Research 239(1):1-16. https://doi.org/10.1016/j.ejor.2014.02.039
  15. Kao, C., and Hwang, S. N. 2008. "Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan." European journal of operational research 185(1):418-429. https://doi.org/10.1016/j.ejor.2006.11.041
  16. Lam, S. W., Low, J. M., and Tang, L. C. 2009. "Operational efficiencies across Asia Pacific airports." Transportation Research Part E: Logistics and Transportation Review 45(4):654-665. https://doi.org/10.1016/j.tre.2008.11.003
  17. Lin, L. C., and Hong, C. H. 2006. "Operational performance evaluation of international major airports: An application of data envelopment analysis." Journal of Air Transport Management 12(6):342-351. https://doi.org/10.1016/j.jairtraman.2006.08.002
  18. Martin, J. C., and Roman, C. 2001. "An application of DEA to measure the efficiency of Spanish airports prior to privatization." Journal of Air Transport Management 7(3):149-157. https://doi.org/10.1016/S0969-6997(00)00044-2
  19. Martin-Cejas, R. R. 2002. "An approximation to the productive efficiency of the Spanish airports network through a deterministic cost frontier." Journal of Air Transport Management 8(4):233-238. https://doi.org/10.1016/S0969-6997(01)00056-4
  20. Meng, J. 2016. "Using Two-stage DEA model to analysis the efficiency of the world's major airports." Master's thesis., Dongguk University-Seoul.
  21. Oum, T. H., Yu, C., and Fu, X. 2003. "A comparative analysis of productivity performance of the world's major airports: summary report of the ATRS global airport benchmarking research report-2002." Journal of Air Transport Management 9(5):285-297. https://doi.org/10.1016/S0969-6997(03)00037-1
  22. Pels, E., Nijkamp, P., and Rietveld, P. 2003. "Inefficiencies and scale economies of European airport operations." Transportation Research Part E: Logistics and Transportation Review 39(5):341-361. https://doi.org/10.1016/S1366-5545(03)00016-4
  23. Sarkis, J. 2000. "An analysis of the operational efficiency of major airports in the United States." Journal of Operations Management 18(3):335-351. https://doi.org/10.1016/S0272-6963(99)00032-7
  24. Seiford, L. M., and Zhu, J. 1999. "Profitability and marketability of the top 55 US commercial banks." Management Science 45(9):1270-1288. https://doi.org/10.1287/mnsc.45.9.1270
  25. Sexton, T. R., and Lewis, H. F. 2003. "Two-stage DEA: An application to major league baseball." Journal of Productivity Analysis 19(2):227-249. https://doi.org/10.1023/A:1022861618317
  26. Yoshida, Y. 2004. "Endogenous-weight TFP measurement: methodology and its application to Japanese-airport benchmarking." Transportation Research Part E: Logistics and Transportation Review 40(2):151-182. https://doi.org/10.1016/S1366-5545(03)00032-2