EconPapers    
Economics at your fingertips  
 

The commercial performance of global airports

Franz Fuerst and Sven Gross

Transport Policy, 2018, vol. 61, issue C, 123-131

Abstract: Revenues from non-aeronautical business have received increasing attention from airports seeking to enhance their profitability. This study analyzes the commercial performance of global airports using a panel dataset of 75 airports in 30 countries. Applying pooled OLS, random effects and 3SLS estimation frameworks, we identify the main drivers of financial performance. Our results are in line with the existing literature. The share of international passengers, the size of the commercial area as well as airport size and the mix and intra-terminal location of retail space are found to be significant determinants. The latter finding suggests the presence of economies of scale in generating higher commercial revenue and ensuring profitability for an airport's non-aeronautical operations. Staterun and partially privatized airports appear to retain a significantly smaller share of concession sales than their privatized counterparts. Regarding the retail mix, a higher share of food and beverage outlets appears to increase the revenue share retained by the airport while a higher percentage of outlets located airside rather than landside depresses commercial revenues.

Keywords: Commercial revenues; Non-aeronautical airport income; Airport finances (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0967070X16304826
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:trapol:v:61:y:2018:i:c:p:123-131

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Transport Policy is currently edited by Y. Hayashi

More articles in Transport Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-12-09
Handle: RePEc:eee:trapol:v:61:y:2018:i:c:p:123-131