ATRS Global Airport Performance
Benchmarking Report, 2003
Tae H. Oum
UBC and Air Transport Research Society
www.atrsworld.org
presented at
NEXTOR Conference
Tuesday, January 27 – Friday, January 30, 2004
Asilomar Conference Center, Pacific Grove CA
ATRS Global Airport Benchmarking
Task Force Members
www.atrsworld.org
Asia Pacific: Peter Forsyth, Yuichiro Yoshida, Yeong-Heok Lee;
Europe: Jaap de Wit, Eric Pels, Keith Mason, Nicole Adler,
N. America: David Gillen, Tae Oum, Bijan Vasigh, Chunyan Yu
Project Coordinator: Tae Oum, UBC
Tae.oum@sauder.ubc.ca
Outline
‹ Objective
of the Study; Sample Airports
‹ Gross Productivity and Costs – why they
can not be used for comparison
‹ Removing effects of the factors beyond
managerial control
‹ Results on Residual Productivities and Cost
Competitiveness
Objective of the Study
‹ To
do a comprehensive, unbiased assessment of
airport performance, including:
– Productivity and Efficiency
– Unit Cost Competitiveness
--------------------------------------------------------------
‹ Future:
Aviation User charges levels;
Impacts of Safety and Security on Airport;
Identifying Key Areas Need Improving, and How
Objective of the Study - Cont.
‹ Identify
effects of
– Airport operating environment
– Extent of Business Diversification
(commercial services)
– Extent of outsourcing
– Service quality
On productivity, unit cost and other
performance measures,
‹And
remove the effects of the variables
beyond managerial control.
Airports Included in our Study
Partial Data
Full Data
Canada-U.S.
43 airports
43 airports
Europe
26 airports
19 airports
Asia-Pacific
21 airports
14 airports
-----------------------------------------------------Total
90 airports
76 airports
Data Sources
‹
‹
‹
‹
‹
‹
US FAA and DOT statistics; AEA Statistics
ICAO Digest of Statistics:
– annual financial data – for some airports
ACI; IATA data
– 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
Various government and other sources for security charges
Obtained some data directly from our sample airports
Sample airport characteristics – N. America
Airport
ATL
BOS
CVG
DFW
DTW
EWR
HNL
IAD
IAH
JFK
LAX
MCO
MIA
MSP
ORD
PDX
PHL
SEA
SFO
YUL
YVR
YYC
YYZ
Total Passengers
(000's)
2,000
2,001
80,162
26,973
22,538
51,349
35,535
34,188
23,017
20,661
35,251
32,856
67,303
30,485
33,621
36,752
72,144
13,823
24,918
28,409
40,980
8,493
16,247
8,090
28,930
75,849
24,200
17,270
55,151
32,294
30,500
21,096
17,860
34,975
29,400
61,025
28,167
31,668
35,171
66,805
12,704
23,927
27,036
34,627
8,157
15,622
8,300
28,043
Passengers/
Movement
2,000
2,001
88
85
62
53
47
44
73
70
64
62
76
70
67
65
43
45
73
74
95
101
86
83
85
88
65
67
70
70
79
73
43
46
51
51
64
68
93
89
41
42
48
50
48
37
68
69
% International % Aeronautical Customer
Passengers
Revenues
Satisfaction*
2,000 2,001 2,000
2,001 2,000
2,001
3.92
3.68
7%
42%
7% 48%
3.44
3.44
16%
45%
24% 46%
4.13
4.13
4%
61%
4% 57%
3.85
3.51
8%
55%
8% 52%
3.23
2.98
11%
55%
10% 54%
3.63
3.28
25%
70%
23% 70%
3.44
3.44
22%
34%
21% 29%
3.55
3.35
18%
59%
22% 61%
3.88
3.56
16%
53%
16% 46%
3.32
3.13
57%
72%
57% 72%
3.39
3.15
26%
41%
26% 41%
3.89
3.89
8%
39%
7% 36%
3.44
3.23
48%
49%
48% 38%
3.97
3.84
5%
52%
4% 48%
3.73
3.44
15%
66%
14% 60%
3.74
3.74
4%
49%
2% 43%
3.31
11%
65%
12% 63%
n/a
3.91
3.67
9%
52%
9% 52%
3.55
3.19
20%
52%
22% 51%
3.64
3.41
51%
31%
51% 33%
4.25
3.91
47%
32%
49% 30%
3.91
3.91
29%
37%
29% 36%
3.67
3.36
57%
55%
56% 62%
Sample airport characteristics – Europe
Airport
AMS
BRU
CDG
CPH
DUS
FCO
FRA
GVA
HEL
LGW
LHR
MAN
MUC
MXP
OSL
VIE
ZRH
Total Passengers
(000's)
2,000
2,001
39,607
21,595
48,246
18,294
16,030
27,118
49,360
7,764
10,004
32,066
64,607
18,820
23,153
20,717
14,232
11,940
22,627
39,531
19,636
47,996
18,136
15,393
25,566
48,569
7,488
9,972
31,182
60,743
19,555
23,647
18,570
13,993
11,853
21,013
Passengers/ % International % Aeronautical
Movement
Passengers
Revenues
2,000
2,001
2,000 2,001 2,000 2,001
Europe
92
99%
49%
48%
92
99%
66
100%
99%
62%
62%
64
97
71%
90%
31%
33%
92
60
88%
90%
60%
60%
63
83
75%
76%
72%
72%
80
87
52%
52%
64%
65%
90
108
82%
83%
73%
70%
107
45
85%
86%
49%
48%
46
60
69%
70%
69%
68%
60
123
91%
90%
46%
46%
124
138
88%
89%
48%
48%
131
95
82%
83%
50%
52%
99
73
63%
64%
60%
59%
70
83
73%
76%
71%
71%
78
70
47%
48%
54%
52%
71
58
95%
95%
78%
77%
58
69
94%
94%
53%
52%
68
Customer
Satisfaction*
2,000
2,001
4.05
3.83
3.36
4.35
3.58
3.54
3.59
n/a
4.28
n/a
3.64
4.18
3.82
3.43
3.98
3.99
3.80
3.83
3.36
4.08
3.32
3.36
3.36
3.40
4.05
3.58
3.40
3.93
3.82
3.27
3.76
3.64
3.72
Sample airport characteristics – Asia Pacific
Airport
BKK
HKG
KIX
KUL
PEK
SEL
SIN
SYD
TPE
Total Passengers
(000's)
2,000
2,001
23,534
29,610
20,576
14,733
21,691
36,727
28,618
23,800
18,681
30,624
32,553
19,342
14,539
24,176
22,062
28,094
24,303
18,461
Passengers/ % International % Aeronautical Customer
Movement
Passengers
Revenues Satisfaction*
2,000 2,001 2,000 2,001 2,000 2,001 2,000 2,001
166
175
166
134
116
155
155
78
161
152
157
157
128
109
136
148
83
149
69%
100%
57%
70%
26%
49%
100%
33%
100%
70%
100%
55%
69%
25%
19%
100%
34%
100%
44%
62%
47%
58%
61%
31%
42%
33%
65%
44%
60%
44%
58%
61%
29%
41%
35%
66%
3.60
4.03
3.87
4.16
2.99
3.09
4.31
3.82
3.27
3.46
3.92
3.87
4.16
2.99
3.09
4.16
3.87
3.35
Airport Productivity Analysis
Inputs
Labor
Other non-capital
(soft cost) inputs
Runways
Terminals
Gates (Air bridges)
Outputs
Aircraft movements
Passengers
Cargo tonnes
Other revenues
including concessions
Productivity MEASUREMENT
‹ Partial
Factor Productivity (PFP) Measures:
– Labor productivity
– Soft cost input productivity
– Capital input productivity
Need to go beyond PFPs
⇒⇒ Variable Factor Productivity (VFP)
Total Factor Productivity (TFP)
PFP won’t tell the whole story
(YVR-00 = 1.0)
Labour
Soft Cost Input
Productivity
Productivity
2000 2001 2000
2001
Capital Productivity
Terminal
Gate
Runway
2000
2001
2000
2001
2000
2001
1.57
1.29
1.47
1.08
1.29
1.29
0.62
0.80
3.26
2.88
1.43
1.76
0.90
1.25
1.46
2.45
0.68
1.92
2.60
1.26
1.13
0.64
3.19
2.17
1.37
1.44
2.17
1.06
0.66
1.17
0.94
1.83
1.49
1.84
2.30
0.83
1.09
1.21
0.69
1.27
0.96
1.13
1.18
1.47
1.14
0.94
0.55
0.32
0.48
0.71
0.40
1.05
1.15
0.59
0.88
0.73
1.08
0.47
0.87
1.28
0.58
0.70
1.58
0.49
0.38
0.79
0.56
0.76
1.17
0.71
1.18
0.79
0.67
0.87
0.37
0.48
1.10
1.39
0.54
0.51
0.58
0.48
0.59
0.73
1.00
0.87
0.86
0.78
1.01
0.89
0.58
0.27
0.49
0.55
0.32
0.90
1.11
0.58
0.80
0.72
1.00
0.42
0.80
1.24
0.50
0.67
1.44
0.54
0.38
0.68
0.61
0.78
1.00
0.60
1.11
0.75
0.68
0.89
0.38
0.51
1.09
1.24
0.54
0.51
0.56
0.51
0.56
0.71
0.96
0.90
0.88
0.74
2.94
1.18
0.60
0.41
0.80
0.92
0.35
1.16
1.24
0.81
1.99
0.70
0.99
1.13
1.13
0.77
1.54
0.95
3.32
1.00
0.47
1.43
0.19
0.64
2.79
1.65
2.03
0.72
0.90
1.63
0.56
0.61
1.95
1.57
0.57
0.67
0.59
0.22
0.16
0.38
1.00
0.38
1.13
1.07
2.61
1.12
0.62
0.35
0.85
0.71
0.28
0.99
1.19
0.67
1.80
0.69
0.92
1.02
1.04
0.74
1.32
0.90
3.03
1.11
0.46
1.22
0.21
0.65
2.39
1.40
1.90
0.69
0.90
1.67
0.58
0.64
1.94
1.39
0.57
0.66
0.58
0.23
0.15
0.37
0.96
0.40
1.15
1.00
North America
ATL
BOS
BWI
CLE
CLT
CVG
DCA
DEN
DFW
DTW
EWR
FLL
HNL
IAD
IAH
IND
JFK
LAS
LAX
LGA
MCI
MCO
MDW
MEM
MIA
MSP
ORD
PDX
PHL
PHX
PIT
RDU
SEA
SFO
SLC
STL
TPA
YEG
YOW
YUL
YVR
YYC
YYZ
Mean
1.34
0.64
0.49
0.41
0.80
0.73
0.27
0.65
0.49
0.45
1.29
0.56
0.63
0.56
0.77
0.55
1.20
0.39
0.51
0.71
0.35
0.72
0.24
0.89
0.50
0.94
0.78
0.83
0.49
0.73
0.47
0.54
0.43
0.47
0.43
0.35
0.45
0.22
0.21
0.31
1.00
0.72
0.60
0.61
1.19
0.60
0.50
0.35
0.85
0.53
0.22
0.55
0.48
0.44
1.17
0.55
0.61
0.51
0.71
0.53
1.03
0.37
0.45
0.74
0.35
0.61
0.26
0.91
0.41
0.80
0.73
0.86
0.49
0.75
0.49
0.56
0.43
0.38
0.42
0.34
0.44
0.23
0.20
0.31
0.96
0.74
0.56
0.57
3.46
0.77
0.80
0.85
1.72
1.66
0.37
0.59
2.06
0.92
0.37
0.93
0.97
0.79
1.26
2.88
0.26
1.29
1.09
0.24
1.00
0.60
0.56
1.60
0.62
1.73
1.09
0.78
0.77
1.22
0.36
2.62
0.78
0.82
1.31
1.21
0.85
0.54
0.53
0.45
1.00
0.82
0.66
1.05
4.02
0.67
0.72
0.53
1.66
1.34
0.35
0.50
1.69
0.91
0.36
0.77
1.10
0.80
0.98
2.23
0.24
1.02
0.84
0.27
0.80
0.49
0.44
1.45
0.63
1.26
0.88
0.72
0.71
1.23
0.38
2.40
0.67
0.53
1.31
1.04
0.79
0.46
0.51
0.48
0.91
0.74
0.53
0.94
1.77
1.36
1.42
1.29
1.22
1.67
0.75
0.94
2.33
2.91
1.58
1.79
1.01
1.38
1.59
2.54
0.80
2.02
2.86
1.14
1.15
0.75
2.93
2.13
1.60
1.70
2.32
1.12
0.65
1.19
0.91
1.75
1.50
2.07
2.29
0.84
1.11
1.15
0.72
1.30
1.00
1.09
1.16
1.51
‹
Potential Reasons for the ‘Gross’
Productivity Differentials
Potential Factors Beyond Managerial
Control
– Airport size (Scale of aggregate output)
– Average aircraft size using the airport
(was not statistically significant)
– Share of international traffic
– Share of air cargo services
– Extent of capacity shortage - congestion
delay (passenger density for terminal; non-weather
delay)
Potential Reasons for the ‘Gross’ Productivity
Differentials – cont’d
‹
Factors within Managerial Control
–
–
–
‹
Emphasis on commercial activities (non-aeronautical)
Quality of Service (incl. passenger satisfaction)
The Extent of outsourcing activities
Managerial and technical efficiency
(which we are trying to measure)
⇒⇒ We compute ‘residual (net)’ productivity
measures after removing effects of the Factors
Beyond Managerial Control
1.20
ATL
CLT
YVR
RDU
CVG
YYC
HNL
MSP
PHX
IAH
IND
IAD
DFW
FLL
YOW
PHL
STL
YYZ
MEM
LAS
TPA
DTW
PDX
YUL
BWI
SLC
MCO
ORD
EWR
BOS
MIA
YEG
SEA
MCI
LAX
JFK
CLE
LGA
SFO
DCA
PIT
DEN
MDW
ARN
BCN
MAD
CPH
OSL
AMS
ZRH
LGW
LHR
ADP
BRU
HEL
GVA
DUS
MUC
MAN
FRA
VIE
HAM
AKL
CHC
SYD
SIN
Thai-AAT
PEN
BKK
HKG
ICN
KUL
SEL
KIX
PEK
NRT
Index, YVR00=1.0
Residual VFP (YVR
North America
1.00
Europe
2001
2000
00=1)
Figure S-5 Residual Variable Factor Productivity
1.60
1.40
Asia
Pacific
0.80
0.60
0.40
0.20
0.00
1.00
0.00
ATL
CLT
YVR
RDU
CVG
YYC
HNL
MSP
PHX
IAH
IND
IAD
DFW
FLL
YOW
PHL
STL
YYZ
MEM
LAS
TPA
DTW
PDX
YUL
BWI
SLC
MCO
ORD
EWR
BOS
MIA
YEG
SEA
MCI
LAX
JFK
CLE
LGA
SFO
DCA
PIT
DEN
MDW
Mean
Index, YVR00=1.0
N. America - RVFP (YVR 00=1)
Figure S-7 Residual Variable Factor Productivity
North America
1.60
1.40
1.20
2000
2001
0.80
0.60
0.40
0.20
10.00
ATL
CLT
RDU
IND
MEM
YVR
PHX
YYC
HNL
DFW
CVG
MSP
SLC
IAH
STL
FLL
LAX
LAS
ORD
BWI
DTW
PHL
TPA
YYZ
PDX
MCI
IAD
YUL
BOS
SEA
MCO
YOW
CLE
YEG
MIA
DEN
PIT
SFO
EWR
MDW
LGA
JFK
DCA
BCN
MAD
ARN
CPH
HEL
AMS
ADP
BRU
ZRH
LHR
OSL
LGW
FRA
MUC
VIE
GVA
DUS
HAM
MAN
Thai-AAT
AKL
SYD
BKK
CHC
PEN
PEK
SEL
SIN
ICN
KUL
HKG
KIX
NRT
Index, YVR00=1.0
Unit Variable Cost Index
(YVR00=1)
Figure S-8 Unit Variable Cost Index, 2001
14.00
12.00
North America
Europe
Asia
Pacific
8.00
6.00
4.00
2.00
0.00
Cost Competitiveness
‹
‹
Productive Efficiency – Residual
VFP
Variable Input Prices
2.0
1.8
1.6
1.4
YOW
YUL
YYC
YEG
IND
YYZ
RDU
PIT
YVR
STL
ATL
SLC
CLT
LAS
MCI
DFW
HNL
LAX
CVG
BWI
CLE
TPA
PHL
FLL
PHX
DTW
MEM
IAH
SEA
MCO
MSP
IAD
MDW
DEN
MIA
ORD
PDX
BOS
SFO
DCA
JFK
EWR
LGA
HEL
BCN
VIE
MAD
FRA
HAM
MUC
DUS
CPH
ADP
AMS
BRU
MAN
ARN
OSL
ZRH
GVA
LGW
LHR
PEK
PEN
Thai-AAT
SEL
KUL
BKK
CHC
AKL
ICN
SYD
SIN
HKG
NRT
KIX
Index, YVR=1.0
Variable Input Price (YVR=1)
North
America
Variable Input Price Index
Europe
North
America
Europe
2000
2001
Asia
Pacific
Asia
Pacific
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Index, YVR=1.0
-0.5
-1.5
-2.0
2000
2001
Thai-AAT
PEN
AKL
CHC
Europe
HKG
North
America
NRT
KIX
ATL
1.0
PEK
BKK
SYD
SEL
KUL
ICN
SIN
0.5
IND
YUL
YYZ
PHX
STL
YEG
IAH
DFW
LAS
MSP
FLL
SLC
PHL
TPA
BWI
MEM
PIT
DTW
MCI
IAD
LAX
CLE
MCO
SEA
PDX
ORD
MIA
BOS
SFO
DCA
DEN
JFK
EWR
MDW
LGA
BCN
MAD
HEL
CPH
ARN
VIE
AMS
ADP
FRA
MUC
DUS
OSL
HAM
BRU
ZRH
MAN
LGW
GVA
LHR
-1.0
YYC
CVG
HNL
0.0
RDU
YVR
CLT
Cost Competitiveness (YVR=0)
Cost Competitiveness Indicator
% above or below YVR
Asia
Pacific
Top Performers
based on residual VFP, residual TFP, CC
Residual VFP (Labor+Soft cost inputs only):
‹ Atlanta, Charlotte, Vancouver, RDU, CVG, Calgary
‹ Auckland, Christchurch, Sydney
‹ (Arlanda, Barcelona, Madrid), Copenhagen, Oslo,
Amsterdam,
Residual TFP
‹
‹
‹
Atlanta, Raleigh-Durham, Indianapolis, Vancouver, PHX, YYC
(BCN, ARN), Gatwick, (MAD), Zurich, Oslo, Heathrow, Copenhagen
Auckland, Sydney, Kansai, Christchurch
Cost Competitiveness
‹
‹
‹
Atlanta, Raleigh-Durham, Vancouver, Charlotte, Calgary
(Barcelona, Madrid), Helsinki, Copenhagen
Thai-AAT, Auckland, Christchurch, Beijing,
Future Efforts
‹ Airport
user charges
‹ Service quality performance
‹ Impacts of increased airport security on
productivity and cost measures
‹ Identify areas for managerial
improvement, and how?
ATRS Benchmarking Work
‹
‹
Task Force members are experts in cost,
productivity measurement work;
The project expenses financed entirely by
report sales – 400+ pages; US$300
vol. 1: Executive Summary
vol. 2: Main Text and Analysis
vol. 3: airport profiles; methodologies
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ATRS Corporate member price: US$210
ATRS Corporate membership:
One Year: US$ 500; Two year $1,000
Permanent Membership: US$2,000
ATRS Annual Conferences
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Vancouver (1997); Dublin (1998); Hong
Kong (1999); Amsterdam (2000); Seoul
(2001); Seattle (2002); Toulouse (2003)
Istanbul (1-3, July, 2004);
Rio de Janeiro (July, 2005)
Details on ATRS activities are available on
www.atrsworld.org
Thank You