Prof. Tae H. Oum The Air Transport Research Society (ATRS)

Transcription

1 Key Results of the 2010 ATRS Global Airport Performance Benchmarking Project Prof. Tae H. Oum The Air Transport Research Society (ATRS) The ATRS Global Airport Benchmarking Task Force Asia Pacific: P. Forsyth, Yeong-Heok Lee, Yuichiro Yoshida, Japhet Law Europe: Nicole Adler, Jaap de Wit, Hans-Martin Niemeier, Eric Pels North America: David Gillen, Tae Oum, Bijan Vasigh, Jia Yan, Chunyan Yu

2 Outline Objective of the Benchmarking Study Airports Included Methodology Key Results on Efficiency and Costs User Charge Comparisons Effects of Business Strategies A Concluding Note

3 Objective of the Study To provide a comprehensive, unbiased comparison of airport performance focusing on Productivity and Operating/Mgt Efficiency Unit Cost Competitiveness Comparison of Airport Charge Levels Our study does not treat service quality differentials among airports

4 Airports Included in the study Canada-U.S. 63 airports Europe 43 airports Asia 12 airport groups 27 airports 4 airport groups Australia and NZ 9 airports Total 142 airports and 16 airport groups ***Need your help to include more airports in our study; Can you help us with the data?

5 Data Sources: (2009 data for airport user charges) Airport s Financial Statements, Annual Reports and direct data requests; US FAA, DOT statistics; Association of European Airlines (AEA) Statistics ICAO Digest of Statistics: annual and monthly traffic data annual financial data - not for all airports ACI; IATA annual traffic statistics; Capacity information general information surveys (Asia Pacific and Europe) occasional and not complete IMF and World Bank various price indices including GDP deflators for service sectors and PPP US Census Bureau, Statistics Canada regionally based Cost of Living Index

6 Some Characteristics of Sample Airports

7 Passengers in Millions Europe (2008/06/04)

8 Passengers in Millions Asia Pacific (2008/06/04) Air Transport Research Society

9 Passengers in millions N. America (2008/06/04)

10 Concession Revenue Shares Europe Individual Airports Airport Authorities Air Transport Research Society

11 Concession Revenue Shares Asia-Pacific Air Transport Research Society

12 Concession Revenue Shares N. America

13 Outline Objective of the Benchmarking Study Airports Included Methodology Key Results on Efficiency and Costs Airport User Charge Comparisons Effects of Business Strategies Conclusions

14 Methodology: EFFICIENCY MEASUREMENT Variable Factor Productivity (VFP) Index Impossible - Total Factor Productivity (TFP) because of capital input cost accounting problem Unit Operating Cost Competitiveness Index: Combines VFP and Input Price Index We explored Alternative approaches we have explored: Data Envelopment Analysis (DEA) Econometric Cost Function Approach including Stochastic Frontier methods Note: Industry acceptance of our report using more advanced/sophiscated methods is one of our major concern

15 Airport Productivity Index Outputs Aircraft movement Passengers (Cargo) Other revenues including concessions Labour Inputs Other non-capital (soft cost) inputs Physical capital measures: o Runways o Terminals o Gates

16 Potential Reasons for the Measured Productivity (gross VFP) Differentials Factors Beyond Managerial Control: Airport size (Scale of aggregate output) Average aircraft size using the airport Share of international traffic Share of air cargo traffic Extent of capacity shortage - congestion delay Connecting/transfer ratio We compute residual (net) productivity measures after removing effects of these Factors

17 Outline Objective of the Benchmarking Study Airports Included Methodology Key Results on Efficiency and Costs Airport User Charge Comparisons Effects of Business Strategies Conclusions

18 Residual (Net) Variable Factor Productivity: Overall Operating/Managerial Efficiency Measure Europe Air Transport Research Society

19 Residual (Net) Variable Factor Productivity: Overall Efficiency Measure Asia Pacific Air Transport Research Society

20 Residual (Net) Variable Factor Productivity: Overall Efficiency Measure Asia Pacific Air Transport Research Society

21 Seoul-Gimpo (SEL) Airport experienced a Remarkable Turnaround When new Seoul-Incheon Airport (ICN) opened in 2001, Korean govt transferred all int l flights from SEL to ICN Drastic reduction of flight, passengers, and revenue Korea Airports Corporation (KAC) responsible for SEL airport operation, has led a remarkable turnaround success by making use of severely underutilized facilities and airport lands for generating commercial (non-aeronautical revenue), and by under-taking a series of important cost saving measures Not so successful in other similar cases where Int l services shifted to new airports: e.g. KIX vs. Osaka- Itami, Pudong-Hong-Qiao in Shanghai, Bangkok, etc. Air Transport Research Society

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25 Residual (Net) Variable Factor Productivity: North America Passengers > 15 million

26 Residual (Net) Variable Factor Productivity: North America Passengers < 15 million

27 Top Efficiency Award Winners (based on Net VFP index=operating/management efficiency) Europe: Large Airports (> 15 million pax): Olso, Copenhagen Small/Medium Airports (< 15 millions Pax): Geneva,, Ciampino Asia-Pacific: Large airports (> 15 million PAX): Hong Kong, Sydney Small airports (< 15 million PAX): Seoul-Gimpo, Perth North America (Canada/US): Large Airports (> 15 million pax): Atlanta (also the Global Top Performer), Minneapolis/St Paul Small/Medium Airports (< 15 millions Pax): Raleigh- Durham, Richmond (VA) Air Transport Research Society

28 Cost Competitiveness Europe = Net VFP and Input Prices

29 Cost Competitiveness Asia Pacific Air Transport Research Society

30 Cost Competitiveness North America Passengers > 15 million

31 Cost Competitiveness North America Passenger < 15 million

32 Top Unit Cost Competitiveness Performers Europe: Polish Airports, Athens, Tallinn(Estonia), Rome- Ciampino Asia-Pacific: Haikou (China), APII (Indonesian group), AAI (Airports Authority of Inida), AOT (Airport Authority of Thailand) N. America (Canada/US): Large Airports (> 15 million Pax): Atlanta, Charlotte, Tampa Small/Med Airports (< 15 million Pax): Raleigh- Durham, Richmond (VA), Nashville, Air Transport Research Society

33 Outline Objective of the Benchmarking Study Airports Included Methodology Key Results on Efficiency and Costs Airport User Charges Comparison Effects of Business Strategies Concluding Note

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38 Summary Landing/Takeoff Charges European Results: Highest charges: Dusseldorf, Birmingham, Ljubljana (Slovania) Lowest charges: Berlin-Tegel, STN-off-peak, Stockholm Asia-Pacific Results: Highest charges: Wellington, Kansai, Narita Lowest charges: Kuala Lumpur, Bangkok, Dubai North American Results: Highest charges: Toronto, LaGuardia, Newark, Lowest charges: Charlotte, Raleigh-Durham, Tampa

39 Outline Objective of the Benchmarking Study Airports Included Methodology Key Results on Efficiency and Costs Airport User Charge Comparisons Effects of Business Strategies Conclusions

40 Effects of Business Strategies Diversification of Revenue Source is good: Airports with larger share of non-aeronautical revenue achieve higher efficiency (Net VFP) Outsourcing: Airports contracting out various services to outside operator achieve higher efficiency Outsourcing terminal operations improve efficiency

41 A Final Note The ATRS Global Airport Performance Benchmarking Report : 3 volumes, over 500 pages of valuable data and analysis Can be purchased by visiting Report sale finances our annual benchmarking research project

42 Thank You