MANAGEMENT

Productivity growth in UK airports

Airport and Airline Management

Introduction

Although there is an extensive literature on the definition, applicable to various spheres of Government, shortage of research on European airports is illustrated by the fact that it's relatively researched the subject and the research on the effectiveness and efficiency of airport took three alternative methods of determining effectiveness: firstly, nonparametric methods for linear programming is called data coverage analysis DEA. Second are the methods that are using parametric stochastic frontier. Third are the index numbers of such approaches as total factor productivity index Tornquist (where such indexes are extended and estimated using its own weight in total factor productivity approach. we will extend this research efficiency above by estimating the total factor productivity for UK airports using index Malmquist. in addition to measure the effectiveness of the change of seasons, our method allows biased technological change at the airport using the airport activities and inputs in the UK.

The motivation for this study will be the following: first, preliminary studies on the technical efficiency of UK airports, Barros (2008b) evaluation model of stochastic frontier and found that most UK airports than improving their effectiveness since 2000. Barros results contrast with previous studies Parker (1999) about airports BAA (British airports) but the two instruments are the different periods and different methods. However, the reason of decrease in technical efficiency is ambiguous and therefore justifies higher studies. Secondly, the recent acquisition of UK airports Spanish enterprises increased competition. TBI PLC in 2004, the owner of the three regional airports in England, Wales and Northern Ireland was purchased by the Spanish company owned by the company are managed by the Spanish airports and Abertis, Spanish construction company. In July 2006, the BAA was captured by a consortium led by Spanish transport, Ferrovial group. These acquisitions introduced competition in the area, which is reflected in various efficiency. Finally although the technical efficiency of UK airports were examined using modelling stochastic frontier and the DEA, the productivity of these airports are not analysed further justification for this study. Thus the main objective of this study will investigate the total factor productivity change in UK airports using index Malmquist. Malmquist index degrades performance changes in profit or loss as a result of changes in value and gains or losses resulting from technological change. In addition our method will rest on Hicks neutrality and the use of inputs, allowing biased technological change. This method identifies the source of the error in the technological change.

Literature Review

British airports owned and operated by BAA, the British airports (PLC), Manchester Airport PLC, TBI PLC and independent city airports. BAA is the owner and operator of seven UK airports, and a few airports in Italy and the United States, making it one of the largest companies in the transport sector. The airports of the United Kingdom in 1986 was privatised BAA, although the Government share ownership of minor concern about monopoly brought it for the price of closing. In July 2006, the BAA was captured by ...