Files
Abstract
Using three common methodologies for measuring airport efficiency, namely the productivity
index method, Data Envelopment Analysis (DEA) method, and stochastic frontier analysis (SFA)
method, this study examines the efficiency performances of 62 Canadian and U.S. airports. Unlike
most previous studies, this study includes aeronautical and non-aeronautical outputs of airports
as they are inexplicably tied to each other in airport production. The empirical results reveal that
the efficiency scores and rankings measured by these alternative methods are quite similar to each
other in the top 15 and bottom 15 ranked airports, whereas considerable differences exist among
the airports in the middle range. We also found that the percentage of non-aeronautical revenue,
passenger volume, average aircraft size, percentages of international and connecting traffic
significantly affect our airport efficiency estimates in all of the three alternative approaches used.