Abstract
In this paper a simplified benchmarking methodology is presented. This new approach is based on the computation of a discrete envelope over distributed data points. Financial and operational data from 139 European airports in 10 countries was collected for the years 2002 to 2010. For reasons of comparability financial data is deflated to a reference price level, currency and point in time. The data requirements are reduced to the two core variables of the production process, passenger demand and profits or deficits (before interests and taxes) per year. Such data is used to isolate airport industry benchmarks based on minimum passenger levels and maximum profitability. Benchmarking can guide supranational decision-making and regulation on airport subsidy policy by stating maximum feasible profits per passenger and by estimating critical demand levels at the break-even point. In conclusion, scenario-based calculations about potential efficiency gains for underperforming airports are outlined.
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Bubalo, B. (2012). Benchmarking European Airports Based on a Profitability Envelope. In: Hu, H., Shi, X., Stahlbock, R., Voß, S. (eds) Computational Logistics. ICCL 2012. Lecture Notes in Computer Science, vol 7555. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-33587-7_13
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DOI: https://doi.org/10.1007/978-3-642-33587-7_13
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