Abstract
Airport concessions to private management began in Brazil in 2011 to address infrastructure bottlenecks and the need for investments. Productivity improvements after privatization need to be measured and efficiency gains can help to identify strategic points where to intervene both in current and upcoming concessions. However, previous studies have applied neither the Slacks-Based Measure Data Analysis Envelopment models nor the second stage Tobit regression to evaluate airport efficiency, especially in the context of Brazilian airport privatization. The objective of this study is to verify if privatization contributes to improving Brazilian airports' productive efficiency compared with public airports, using variable slacks and identifying new socio-economic variables that may influence the productive efficiency index. A two-stage SBM-DEA approach found that only 40% of the sample among 28 airports are efficient, evidencing poor management overall, and the slacks show the sectors that need most attention and investments. Based on the productive process and the sample evaluated, the study concludes that privatization of Brazilian airports did not improve their production efficiency. A revision of the contracts in the first round of concessions is suggested, as contractual obligation may result in lower production efficiency.
Highlights
Brazilian air transportation has experienced a fast growth in demand in the last few decades, which led to higher demand for infrastructure
This study proves that U.S airports can substitute Passenger Facility Charge (PFC) for Airport Improvement Program (AIP) funds in the proportion of 8-35% of the current AIP, but this substitution negatively correlates to productive ef,iciency
The Decision-Making Units (DMU) in this research are Brazilian international airports located in state capitals, in addition to other airports with a high movement of passengers and airports that are being considered for concessioning, resulting in a sample of 28 Brazilian airports
Summary
Brazilian air transportation has experienced a fast growth in demand in the last few decades, which led to higher demand for infrastructure. In this scenario, the Brazilian government transferred in concession some of the main Brazilian airports to the private sector to accelerate and allow for modernization of facilities, investments in infrastructure, and technological innovations. The performance assessment is crucial to evaluate the demand adequacy and to evaluate the results of the current concessions and the upcoming ones in airport productivity considering that privatization of airports in Brazil was carried out following the concession model. In the case of Brazil, the concessions are the result of restrictions on public investments considering a greater ,lexibility of private investments
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