A centralised DEA approach to resource reallocation in Spanish airports

Ripoll-Zarraga, Ane Elixabete; Lozano, Sebastián

doi:10.1007/s10479-019-03271-6

Cited by 22 publications

(7 citation statements)

References 63 publications

(55 reference statements)

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“…The centralised management affects the flexibility of airports to operate, impairing the market attractiveness to airlines, thus, passengers. Recent studies confirm cargo specialisation improves overall system efficiency (Ripoll-Zarraga and Lozano, 2019). Ripoll-Zarraga and Raya (2020) analysed the Spanish airports differing between touristic versus non-touristic cities assuming that national and international visitors travel by air mode, which is unlikely for national tourists.…”

Section: Airports' Investments: Sources Of Inefficiencymentioning

confidence: 99%

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Airports’ public infrastructure and sources of inefficiency

Ripoll-Zarraga

2023

JEFAS

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PurposeThe Spanish airport system contains several regional airports within an amenity distance and alternative travel modes. Profitable airports cross-subsidise small airports, which are not required for regional development or connectivity. Airports are government-owned and centralised-managed by Spanish Airports and Air Navigation (AENA, for its Spanish acronym). This study aims to analyse the probability of an under-used public infrastructure and the AENA’s managerial ability as per the financial sustainability of the network in the long term.Design/methodology/approachThe national regulatory framework determines the airports’ environment. Six airports revealed unobserved heterogeneity, avoiding model misspecification. The framework is defined through proxies of the singularities of the Spanish framework: public investments and geographical specifications. The stochastic frontier analysis model follows two time-varying specifications, accounting for airports’ environmental factors, to ensure the robustness of the results to differ from the inefficiency caused by AENA and external factors.FindingsAirports’ infrastructure capacity and traffic are not correlated; regional airports become a financial burden for the system unless they specialise or differentiate. Proxies defining the airports’ context are relevant. Because airports do not compete for airlines and passengers, there are too many regional airports with little traffic, resulting in disused public infrastructure that falls far short of improving connectivity and regional development.Originality/valueThis study contributes to paying attention to the characteristics of the regulatory framework, such as management strongly centralised in AENA, airport charges decided by the owner, lack of competition and lack of an independent regulatory entity. Another original contribution considers reliable capital measures (airports’ infrastructure).

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Section: Airports' Investments: Sources Of Inefficiencymentioning

confidence: 99%

“…, 2009) and cargo (Coto-Millán et al. , 2016; Ripoll-Zarraga and Lozano, 2019). Few studies address other factors explaining efficiency, for example, outsourcing activities (Tovar and Martin-Cejas, 2009), low-cost carrier (LCC) (Coto-Millán et al.…”

Section: Introductionmentioning

confidence: 99%

Airports’ public infrastructure and sources of inefficiency

Ripoll-Zarraga

2023

JEFAS

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“…Network DEA models have also been used in assessment of higher education institutions, from different point of views. See for example Yang et al [36] who presented a general two-stage network for assessing 64 Chinese research universities and their evolution over the period of 2010-2013. Hosseini et al [24] analyzed the regress and progress of educational performance of some universities by applying a general network DEA approach with stochastic data.…”

Section: Empirical Applicationmentioning

confidence: 99%

“…Recently, Song et al [37] applied a DEA-based approach to consider production technology heterogeneity among DMUs, allocating a natural resource reduction amount to each DMU. Ripoll-Zarraga and Lozano [36] used a non-oriented slack-based inefficiency DEA model in order to reallocate two transferrable inputs (namely, labour costs and operating costs) between the different airports.…”

Section: Introductionmentioning

confidence: 99%

Centralized resource allocation with the possibility of downsizing in two-stage network production systems

Yadolladi

Matin

2021

RAIRO-Oper. Res.

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The network data envelopment analysis (NDEA) technique has been recently developed to measure the relative efficiency of complex production systems. NDEA models provide more meaningful and informative results in comparison to the conventional black-box DEA approach that ignores the operations of the component processes. Regarding the centralized decision-making systems, normal management imposes common resource constraints to maximize produced outputs and minimize consumed inputs. The present study seeks to introduce new centralized resource allocation models in two-stage network production systems. This intra-organizational perspective also provides the possibility of closing down some of the existing units to improve system efficiency. To do so, three scenarios of centralized DEA models are introduced to take advantage of this possibility. A simple numerical example is used for illustration purposes. An empirical application of the proposed approach to the twenty branches of a university is also presented to show the applicability of the new approach.

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“…Ripoll Zarraga and Lozano (2019) utilized a non‐oriented Slack‐based inefficiency DEA approach to reallocate two different inputs as labor costs and operating costs in between the airports. This study revealed the strategy to increase the total number of passengers, Cargo and number of aircraft movements while keeping the inputs at the same level with reallocating the inputs in an efficient approach.…”

Section: Data Envelopment Analysis and Airportsmentioning

confidence: 99%

A frontier‐based managerial approach for relative sustainability performance assessment of the world's airports

Küçükvar

Alawi

Abdella

et al. 2020

Sustainable Development

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The sustainability impact of air transportation has become crucial to communities. Airports around the world are forced to be transparent with the society and to declare their sustainability results. As the sustainability goals and objectives and due to its multi‐dimension aspects that are needed to be decided of and subsequently improved, the decision has been taken, and the parameters have been selected due to its significance in this field. This research presents a managerial approach combining the optimization‐based frontier approach with the Global Report Initiative's comprehensive sustainability database for selected 30 major international airports based on data availability. In this regard, eco‐efficiency analysis is carried out with four different models using input‐oriented modeling with multiple undesirable environmental inputs (energy, carbon, water, and waste) and desirable outputs (revenue, passenger and employment) to compare efficiency and sustainability levels of airports in different contexts. Finally, performance improvement targets of each environmental indicators are presented for the airports. These comparative models reveal different frontier airports, which provide the opportunity to analyze diversified reference points for the same decision‐making unit. The presented statistical study has shown that San Francisco, Hong Kong, Hamad International Airport are the most efficient airports in terms of overall sustainability performance based on collected data and selected indicators. The authors also concluded that there is a discrepancy in sustainability data reporting between airports, and there is a need for collecting complete, consistent and real‐time social, environmental, economic, and governance data, to better compare and evaluate the performance of each airport from a sustainability perspective.

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A centralised DEA approach to resource reallocation in Spanish airports

Cited by 22 publications

References 63 publications

Airports’ public infrastructure and sources of inefficiency

Airports’ public infrastructure and sources of inefficiency

Centralized resource allocation with the possibility of downsizing in two-stage network production systems

A frontier‐based managerial approach for relative sustainability performance assessment of the world's airports

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