The Technical Efficiency of French Regional Airports and Low-Cost Carrier Terminals

Seock-Jin Hong and Minjun Jeon
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Seock-Jin Hong: Department of Marketing, Logistics and Operations Management, G. Brint Ryan College of Business, University of North Texas, Denton, TX 76203, USA
Minjun Jeon: Department of Information Technology and Decision Science, G. Brint Ryan College of Business, University of North Texas, Denton, TX 76203, USA

Sustainability, 2019, vol. 11, issue 18, 1-15

Abstract: In France, the regional airport’s demand for services is facing challenges due to the continuous expansion of the high-speed train, high-speed line, and highway networks. This study focuses on the viability of regional airports in France through technical efficiency using data envelopment, principle component analysis, Malmquist productivity index, and regression analysis using bootstrapping. To face the current competitive environment, the regional airports in France adopted strategies, such as the construction of low-cost carrier (LCC)-dedicated terminals (LCCTs) with lower expenses to attract more LCCs, increasing non-aeronautical revenue, and hosting regional hubs of LCCs. This is the first study that analyzes all of the French regional airports. The findings indicate that the existence of LCCTs positively affects technical efficiency on the airport’s performance, and share of LCCs at a regional airport leads to neither the efficiency nor the profit level.

Keywords: French regional airports; technical efficiency; data envelopment and principle component analysis; Malmquist Productivity Index; low-cost carrier terminals; high-speed train (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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