Transcript Slayt 1

DEVELOPING MEASURES OF AIRPORT PRODUCTIVITY
AND PERFORMANCE:
APPLICATION OF DATA ENVELOPE ANALYSIS
Presented by ; H.Engin Duran
FHW-Berlin School of Economics
German Airport Project
Agenda
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1.DEA TUTORİAL
- Efficiency Basics
-İnput and Output Oriented Analysis
-The Efficiency /Profitability Matrix
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2. APPLICATION OF DATA ENVELOPE ANALYSIS
-DEA Results including Terminal and Airside efficiency
-Tobit’s Regression Analysis
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3.CONCLUSİONS
1.DEA TUTORIAL
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Definition of DEA ( Data Envelopment
Analysis):
Data envelopment analysis (DEA) is a linear
programming based technique for measuring
the relative performance of organisational
units where the presence of multiple inputs and
outputs makes comparisons difficult
1.DEA TUTORİAL
What is efficiency?
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Productive efficiency refers to producing a given output by
using the minimum possibleamounts of inputs, or, producing
the maximum possible output using a given amount of inputs.
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Difficulty of efficiency measurement in multiple input and
output case
1.DEA TUTORİAL
Relative Efficiency Approach
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In Multiple case relative efficiency approach :
1.DEA TUTORİAL
Relative Efficiency Approach
1.DEA TUTORİAL
Relative Efficiency Approach
Under these circumstances, efficiency of a
target unit can be obtained as a solution to the
following problem:
Maximising the efficiency
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1.DEA TUTORIAL
Relative Efficiency Approach
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DEA modal to solved lineerly
1.DEA TUTORIAL
Output Oriented Analysis
Simulation of two outputs y1 and y2 and a single input e.g v1
(Y1.w1 + Y2.w2 ) / v1 = Relative efficiency
Weights are to be found by solvıng the modal lineerly:
Output oriented modal :
Max Ho: Y1.w1 + Y2.w2
V1=100 (say)
(Y1.w1 + Y2.w2) – v1 < 0
1.DEA TUTORIAL
İnput Oriented Analysis
1.DEA TUTORIAL
Input Oriented Analysis
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X1.V1 + X2.V2/ Y1 = Relative inefficiency
Weights are to be found by solvıng the modal lineerly:
Input oriented modal :
Min Ho: X1.V1 +X2.V2
Y1=100 (say)
X1.V1 +X2.V2 – Y1 > 0
=
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Close to unity, higher efficiency
1.DEA TUTORIAL
Output OrientedAnalysis
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Output versus input oriented DEA modal;
1.DEA TUTORIAL
The Efficiency /Profitability Matrix
2.APPLICATION OF DATA
ENVELOPE ANALYSIS
DEVELOPING MEASURES OF AIRPORT
PRODUCTIVITY AND PERFORMANCE:
APPLICATION OF DATA ENVELOPE
ANALYSIS
David Gillen & Ashish Lall
2.APPLICATION OF DATA
ENVELOPE ANALYSIS
DATA AND METHODOLOGY
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Type of Data
Number of Airports ; (21 all from USA)
Information for each airport was assembled for
the period 1989-1993.
114 observations organized
2.APPLICATION OF DATA
ENVELOPE ANALYSIS
DATA AND METHODOLOGY
Two Types of analysis to be held;
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1.
DEA and relative efficiency approach
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2.
Terminal Efficiency Analysis
Movement Efficiency Analysis
Tobit’s Regression Analysis
2.APPLICATION OF DATA ENVELOPE ANALYSIS
DEA and relative efficiency approach
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Terminal Efficiency Analysis
Outputs: Number of passengers, Pounds of cargo
İnputs: Number of runways number of gates, terminal area,
number of employees, number of baggage collection belts and
number of public parking spots.
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Movement Efficiency Analysis
Outputs:Air carrier movements, commuter movements
Inputs:airport area, number of runways, runway area
and number of employees
2.APPLICATION OF DATA ENVELOPE ANALYSIS
DEA Results including Terminal and Airside efficiency
2.APPLICATION OF DATA ENVELOPE ANALYSIS
DEA Results including Terminal and Airside efficiency
2.APPLICATION OF DATA ENVELOPE ANALYSIS
DEA Results including Terminal and Airside efficiency
2.APPLICATION OF DATA ENVELOPE ANALYSIS
DEA Results including Terminal and Airside efficiency
2.APPLICATION OF DATA ENVELOPE ANALYSIS
DEA Results including Terminal and Airside efficiency
2.APPLICATION OF DATA ENVELOPE ANALYSIS
DEA Results including Terminal and Airside efficiency
2.APPLICATION OF DATA ENVELOPE ANALYSIS
DEA Results including Terminal and Airside efficiency
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Interpretations regarding efficiency measurements;
In the majority of cases the index is falling implying an increase in efficiency
,basically can be explained by a reflect in part the emergence from the
recession in the late 1980's.
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Anchorage shows an increase in inefficiency for terminals but a
reduction in inefficiency for movements reduction in passengers due to
long haul jets being able to bypass this technical stop
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The hub airports exhibit some loose similarities;As hubbing rises the
terminal efficiency improves but movements efficiency decreases most
likely due to the feed from small commuter aircrafts
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Terminals whıch are doing better reflect new and expanding hub
operations,traffic and economic growth (e.g. San Diego).
Those doing the same are well established hub airports.
2.APPLICATION OF DATA ENVELOPE ANALYSIS
Tobit’s Regression Analysis
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Methodology;Set of Data;
4 set of Data is used;
İndependent variables; dummy variables for the time
period, dummy variables for hub airports,noise
strategy variables and management operational and
investment variables.
Dependent Variables;Log of efficiency Index of
movements,close to zero means more efficient .
2.APPLICATION OF DATA ENVELOPE ANALYSIS
Tobit’s Regression Analysis
2.APPLICATION OF DATA ENVELOPE ANALYSIS
Tobit’s Regression Analysis
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Results and Interpretations regarding Tobit’s Regression for
Movements:
The time dummies are not significant so there is no apparent
trend in the data or anomalies in one year or another
The hub dummies show clearly that primary hubs increase the
efficient use of the airside.The former hubs have a large
number of feeder flights hence increasing the level of
efficiency
Using a preferential flight path or limiting the hours of
operation reduces inefficiency while all the remaining noise
management strategies tend to increase inefficiency.
2.APPLICATION OF DATA ENVELOPE ANALYSIS
Tobit’s Regression Analysis
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Results and Interpretations regarding Tobit’s Regression for
Movements:
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Limiting the hours an airport leads reducing inefficiency due to given
limitations utilizes efficiency of airports ,Increasing the number of boarding
gates can increase airside efficiency while increasing the number of
runways has no impact
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Financing strategy of airport leads to change in efficiency. Airports that
have residual financing have a higher level of efficiency. Under residual
financing the airlines are at risk for revenue shortfalls, thıs brings pressure
to bear on the airport to ensure greater efficiency on the airside.
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The preferred noise management strategy is to in fact limit operating hours
and to use preferential flight paths would increase efficiency
2.APPLICATION OF DATA ENVELOPE ANALYSIS
Tobit’s Regression Analysis
2.APPLICATION OF DATA ENVELOPE ANALYSIS
Tobit’s Regression Analysis
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Results and Interpretations regarding Tobit’s Regression for terminal:
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Terminals at airports that are hubs operate at a higher level of efficiency
than non-hubs.
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The way in which gates are managed has an impact on efficiency. The
greater the proportion of common and exclusive use gates the greater the
reduction in inefficiency.In Common use of gates airports playing major
role and take care for maximising efficiency at the mean time İn exclusive
use of gates carriers do take care about efficiency
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As the proportion of preferential use gates rises we get the opposite result;
efficiency falls. A carrier which has preferential treatment may try to use
gates as a barrier to entry and not necessarily use them efficiently
2.APPLICATION OF DATA ENVELOPE ANALYSIS
Tobit’s Regression Analysis
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Results and Interpretations regarding Tobit’s Regression for
terminal:
Having greater proportions of international passengers is one
strategy which has a marked impact on improving terminal
efficiency.
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Adding gates is also effective but how one manages those
gates is also important
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Bigger terminals are not the solution to improving efficiency
but allowing greater access to aircraft and passengers with
greater numbers of gates will.
Conclusion
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In the majority of cases the index is falling implying
an increase in efficiency (or reduction in
inefficiency). This can reflect in
part the emergence from the recession in the late
1980's.
The best thing airport management is to improve
efficiency is create pressures of productive and
dynamic efficiency through corportization or
privatization: 'residual financing' variable.
Conclusion
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The productivity improvement is a combination of external
market forces as well as internal firm reorganization and
changing management incentives - intra-firm market forces
Most important items ;
Airside Efficiency
Having hubs ,
Expanding Gate Capacity
Market Discipline
Movement Efficiency
Expanding number of
gates in forms of common or exclusive but not preferantial
Conclusion
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Is Carrying out such similar project possible
for German Airports ?
-Possible but difficulties exist;
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Low number of international Airports
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Lack of sufficient useful data
Thank you !