Airline market structure and airport efficiency: Evidence from major Northeast Asian airports

This paper investigates the impact of airline market structure on airport productivity, in which airlines are viewed as downstream users of an airport in a vertical airport–airlines structure. The authors' estimation is based on a sample of eleven major airports in Northeast Asia. A standard two-stage approach is employed: In the first stage, efficiency of the airports is measured by both the data envelopment analysis and stochastic frontier analysis. The resulting efficiency scores are carried over to a second-stage analysis in which Tobit regression is conducted to quantify the impact of airline concentration on efficiency, controlling for such factors as airport governance structure, airport competition and other characteristics. The authors find an inverse U-shaped relationship between airport efficiency and downstream airlines' market concentration: i.e., either too much or too little downstream concentration is associated with airport inefficiency. Other interesting and useful results are also obtained and discussed.

• Record URL:
  https://doi.org/10.1016/j.jairtraman.2013.06.008
• Record URL:
  http://www.sciencedirect.com/science/article/pii/S0969699713000690
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/31005945
• Supplemental Notes:
  • Abstract reprinted with permission from Elsevier.
• Authors:
  • Ha, Hun-Koo
  • Wan, Yulai
  • Yoshida, Yuichiro
  • Zhang, Anming
• Publication Date: 2013-10

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: pp 32-42
• Serial:
  • Journal of Air Transport Management
  • Volume: 33
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 0969-6997
  • Serial URL: http://www.sciencedirect.com/science/journal/09696997

Subject/Index Terms

• TRT Terms: Airlines; Airport operations; Case studies; Market structure; Nonparametric analysis; Productivity
• Uncontrolled Terms: Data envelopment analysis; Stochastic frontier analysis
• Geographic Terms: Northeast Asia
• Subject Areas: Administration and Management; Aviation; Economics; I10: Economics and Administration;

Filing Info

• Accession Number: 01496225
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 30 2013 11:12AM