Evaluating the efficiency performance of airports using an integrated AHP/DEA-AR technique

Abstract

Airport efficiency is an area of increasing interest to academics, policy makers and practitioners. This has resulted in a body of literature applying various econometric techniques to compare efficiency between different samples of airports. This paper uses the multi-criteria decision making method Analytic Hierarchy Process (AHP) to incorporate the weightings of input and output variables into Data Envelopment Analysis (DEA) and Assurance Region DEA (DEA-AR) models, with 24 major international airports in the empirical analysis. The paper concludes the discriminatory power in the proposed AHP/DEA-AR model is greater than in the basic DEA model when measuring the efficiency of airports. By applying this approach, policy makers and practitioners can effectively compare operational efficiency between airports, and therefore generate more informed decisions.

The Implementation of Analytical Hierarchy Process Method for Outstanding Achievement Scholarship Reception Selection at Universal University of Batam

“…Figure 2 illustrates that the hierarchical criteria structure was the scholarship recipients that had been set by the university, the next step was to collect data by expert in pairwise matrix matrices, then calculated the criteria and alternative priority weighting. The next step was to evaluate whetherthe result of the calculation is acceptable or not measured by the consistency ratio where CR <0.1 if not then do the improvement [6].…”

Improving the Performance of Dry and Maritime Ports by Increasing Knowledge about the Most Relevant Functionalities of the Terminal Operating System (TOS)

“…Velasquez and Hester (2013) compared the different MCDM methods, analyzed their advantages and disadvantages, and identified the types of studies for which they are more suitable [33]. AHP is a suitable method when the researcher wants to rate a criterion against the other criteria at the same level of the hierarchical tree [34] and has been widely used in the study of supply chain problems [35][36][37][38][39][40].…”

Benchmarking the Yearly Performances of the Indian Railways

“…Data Envelopment Analysis (DEA) is a mathematical technique for determining the relative efficiencies of firms. Its applications spread widely across various infrastructure sectors such as Airports [4][5][6], Irrigation [7][8][9], Coal [10], Electricity-sector [11], Water-sector [12][13], and Solid Waste [14] etc. However, benchmarking studies in the Railway sector are rather rare and there exists a deficiency of studies that employ DEA for the Railways.…”