Study on non-aeronautical efficiency of Chinese listed airports based on two-stage network DEA

Abstract

This study evaluates airport non-aeronautical efficiency from 2016 to 2019 with statistical data to help promote airport sustainable development. Seven Chinese listed airports (PEK, PVG, CAN, SZX, XMN, HAK, and HKG, HKG is quasi-listed) are studied. Airport efficiency is evaluated from process level (i.e., operational process providing aeronautical services and financial process providing non-aeronautical services) to airport level by the network DEA (NDEA) method and the key influencing factors of overall efficiency are identified by employing the Panel Data model. The first-stage NDEA results indicate that HKG is the most efficient among the sample airports for the entire study period. There was an obvious observed increasing trend of average airport operational efficiency (except HKG) from 2016 to 2019, and the scores (average from 0.8724, 0.8928, 0.8953 to 0.8999) were relatively high. This study classifies relatively operationally efficient airports (HAK, XMN, PEK, HKG, and SZX) and financially efficient airports (HKG, and HAK). The operational efficiency of mainland Chinese airports is higher than the financial efficiency, but most airports' non-aeronautical efficiency improves year by year, such as PEK, PVG. Proportion of non-aeronautical revenue of PEK in 2019 has achieved 62.18%, PVG 62.69%, both are similar with HKG 63.70% in 2017. The second-stage regression analysis implies that the airport service quality, airport economic development level, and airport airside level have a significant positive impact on airport efficiency, while the distance from the airport to the city center has a negative impact on airport efficiency. This study helps airport management to evaluate airport financial development strategies by assessing airport non-aeronautical revenue.