Measure French Airport Performance and Low Cost Carrier's Terminal



Measure French Airport Performance and Low Cost Carrier's Terminal

Authors

Seock-Jin Hong, Kedge Business School in Bordeaux

Description

The author investigates French airport performance using Data Envelopment Analysis and statistical test over 80 more airports. The author try to analyze the revenues, their sources and traffic data.

Abstract

In this paper, the author investigates French airport performance using DEA (Data Envelopment Analysis) and statistical test over 80 more airports. Using financial indicators, the author try to analyze the revenues, their sources and traffic data. Low cost carriers (LCC) and Full service carrier (FSC) in Europe are penetrating French market especially in Lyon, Marseille, Toulouse and Bordeaux to connect other European cities and North African countries to attract not only tourist but business travelers. High speed train is expanding the routes in France and connecting to neighbor countries such as Spain and Italy based on Trans-European Network (TEN-T). To face the current environment, airports in France adept the strategies such as construction of LCC's dedicated terminal with the lowest expenses to attract more LCC; increasing non-aeronautical revenue; host regional hub of FSC and other. Research data shows only some of the large airports manage to earn more than 1 euro per passenger consistently (for 3 years in a row). Besides, there is an overall upward trend. There is a high variability of results within intermediary airports group, indicating that size alone does not explain performance. Airports are not able to break even. It is clear that the profitability of large airports is improving over time, while the small intermediate airports decline in profitability. Furthermore, LCC's dedicated terminal in Bordeaux and Marseille have been succeeded to create new passeengers and contributed financial performance fort he airports. The financial contributions are coming not only from aeronautical revenue but also non-aeronautical revenue. The more LCC airlines fly to the airport with lower user charge at airport, the more passenger use the airport. Because, LCC connect more point to point service than hub and spoke network.

Publisher

Association for European Transport