An Empirical Investigation on the Efficiency, Capacity Ownership of Italian Airports

In this paper we study the efficiency of Italian airports applying a DEA model to 34 airports. We find that large airports are more efficient than domestic and regional ones, i.e. small airports have spare capacity since they are more distant from the frontier than large airports. The Tobit regression on the estimated DEA scores shows that efficiency is positively related with the hub premium and with privatisation. Hence we suggest that privatisation incentives to invest in large airports (close to saturation) and development plans to improve the small airports may form the benchmarks of Italian short-run air transportation policy.

The impact of airport competition on technical efficiency: A Stochastic Frontier Analysis applied to Italian airports

We investigate how the intensity of competition among airports affects their technical efficiency by computing airports’ markets on the basis of a potential demand approach. We find that the intensity of competition has a negative impact on airports’ efficiency in Italy during the 2005–2008 period. This implies that airports belonging to a local air transportation system where competition is strong exploit their inputs less intensively than do airports with local monopoly power. Furthermore, we find that public airports are more efficient than private and mixed ones. Since public airports take into account the positive externalities created by air transportation in the local economy, they are more willing to subsidize airlines in developing the airports’ connections. Hence, policy makers should provide incentives to implement airports’ specialization in local systems where competition is strong. Moreover, when regulating airport charges, they should take into account the impact of the above externalities.Airport efficiency; stochastic distance function; airport competition

Manage with care: the frailty of self-connections in the European airport network

AbstractThis study evaluates the attractiveness of self-hubbing in terms of the (a) symmetry of itineraries and the consequences for passengers in the case of missed flights. We compute the most attractive European origin-destination (O-D) pairs through self-connection and evaluate their robustness by estimating the expected delays relative to connecting times and the travel options available when a connection is missed.Results show that the potential of self-connecting markets is reduced when accounting for asymmetrical travel options and the consequences for travelers in the case of missed flights. In terms of frequencies, self-connecting passengers are, on average, found to have fewer alternatives to complete a given O-D pair than in the case of alliance-based connections (− 33%). Our findings moderate the confidence of past evidence on self-hubbing in light of the concrete reliability of self-connections for passengers. The itinerary choice made by passengers inevitably depends on the evaluation of travel quality attributes related to the (a) symmetry of the itineraries and the costs incurred through missed connections

Universities' attractiveness to students: The Darwinism effect

AbstractDue to significant government cuts to Higher Education funding in Southern European systems, their already underfunded universities were forced to increasingly compete for students as sources of additional revenue. Concurrently, families and students that continued to afford participation in Higher Education became more selective when choosing a university, realising the riskier investment that Higher Education participation had become. Through a competing destinations model and relying on all Italian private and public universities, this study finds that the competition forces characterising universities' attractiveness over the last decade have changed since the financial crisis of 2008. In a context of lower demand for Higher Education, the competition for students grew and universities in close proximity were better prepared to face the new challenges, leading to the growth of Higher Education clusters

Airport classification and functionality within the European network

This paper is meant to provide an insight into the roles and characteristics of the different typologies of airports by detailing a functional framework of European airports through the analysis of their distinctive features and interconnecting network. The first part of the work will focus on the classification of airports and their peculiarities following the most recent developments in this sector. The analysis will then turn to the methodology employed to verify the existence of subsystems (or modules) of high interconnectivity within the European aviation network. The classification hereby provided will therefore define the airports both as separate entities with specific characteristics and as parts of a particular network. The results will lead to the identification of major groups gathering together a number of airports characterized by similar features and goals. This paper will also hint at the existence of a solid parallel network within Europe, consisting of so-called secondary airports interconnected by means of low-cost carriers. It should here be stressed that the late development of the European airport network has been prompted by market-driven pressures rather than by clear-cut domestic or European schemes

Using citation metrics as part of academic recruitment decisions leads to an increase in self-citations

The use of citation metrics in academic hiring and promotion decisions was intended as a response to important and legitimate concerns over the meritocracy of recruitment procedures. However, evidence suggests that doing so distorts scientists' behaviour and increases the risk that these measures become unreliable. Marco Seeber, Mattia Cattaneo, Michele Meoli and Paolo Malighetti investigated the use of citation metrics within the Italian higher education system and found that scientists responded to a new regulation linking career advancement to metric scores by increasingly citing their own work. Policymakers should take note and use bibliometric tools as a means of informing rather than determining evaluations, as advocated by initiatives such as DORA and the Leiden Manifesto

The impact of airport competition on technical efficiency: A Stochastic Frontier Analysis applied to Italian airports

We investigate how the intensity of competition among airports affects their technical efficiency by computing airports’ markets on the basis of a potential demand approach. We find that the intensity of competition has a negative impact on airports’ efficiency in Italy during the 2005–2008 period. This implies that airports belonging to a local air transportation system where competition is strong exploit their inputs less intensively than do airports with local monopoly power. Furthermore, we find that public airports are more efficient than private and mixed ones. Since public airports take into account the positive externalities created by air transportation in the local economy, they are more willing to subsidize airlines in developing the airports’ connections. Hence, policy makers should provide incentives to implement airports’ specialization in local systems where competition is strong. Moreover, when regulating airport charges, they should take into account the impact of the above externalities

Manage with care: the frailty of self-connections in the European airport network

This study evaluates the attractiveness of self-hubbing in terms of the (a) symmetry of itineraries and the consequences for passengers in the case of missed flights. We compute the most attractive European origin-destination (O-D) pairs through self-connection and evaluate their robustness by estimating the expected delays relative to connecting times and the travel options available when a connection is missed. Results show that the potential of self-connecting markets is reduced when accounting for asymmetrical travel options and the consequences for travelers in the case of missed flights. In terms of frequencies, self-connecting passengers are, on average, found to have fewer alternatives to complete a given O-D pair than in the case of alliance-based connections (− 33%). Our findings moderate the confidence of past evidence on self-hubbing in light of the concrete reliability of self-connections for passengers. The itinerary choice made by passengers inevitably depends on the evaluation of travel quality attributes related to the (a) symmetry of the itineraries and the costs incurred through missed connections. Document type: Articl

Low-cost carrier entry at small European airports: Low-cost carrier effects on network connectivity and self-transfer potential

Airport connectivity can improve the competitiveness of regions by attracting tourism and inward investment. Regions traditionally accessed international destinations via connecting flights to national gateway airports usually operated by full service network carriers (FSNC). However, the entry of low-cost carriers (LCC) in these markets has led to changes in incumbent FSNC service provision. We analyse how intra-European connectivity has changed at small airports between 2002 and 2012 and how LCC entry has affected the quality of day-return schedules in these markets. Results show that offline LCC connectivity is greater than that scheduled by FSNCs. Furthermore, LCC entry had a negative effect on the quality of the connectivity offered by FSNCs. Interestingly, we also found that day-return itineraries become more difficult for passengers in markets where the LCC is the sole operator. Regional policy-makers may need to more carefully consider the connectivity implications in the design of LCC start-up incentive schemes