 The impact of Airport business practices and governance forms on excess capacityFecri Karanki and Volodymyr Bilotkach Economics of Transportation, 2024, vol. 38, issue C Abstract: Excess capacity poses a persistent challenge for airports as they often encounter lumpy capacity problems. The excess capacity is primarily influenced by factors such as uncertain demand, airline competition, airport pricing strategies, and the market structure of the airport industry. However, airport business practices also account for this issue. Using data from 59 U.S. airports between 2009 and 2019, we found that residual airports have less unused capacity than compensatory airports. This can be explained by the control of signatory airlines over the residual airports’ investment decisions and the lack of retained earnings under the residual agreement. We did not detect a significant difference in excess capacity between single-purpose and multipurpose governance forms. However, it is noteworthy that large hub airports exhibit higher capacity utilization compared to medium hub airports. Airports dominated by LCCs have higher capacity utilization rates, while the unused capacity remains consistent between cargo and non-cargo airports. Keywords: Capacity utilization; Use agreements; Airport governance forms; Semi-parametric analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecotra:v:38:y:2024:i:c:s2212012224000121 DOI: 10.1016/j.ecotra.2024.100353 Access Statistics for this article Economics of Transportation is currently edited by Mogens Fosgerau and Erik Verhoef More articles in Economics of Transportation from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.