The performance of Italian airports

Abstract

The aim of this work is the analysis of the operational efficiencies of the major Italian airports. The study is based on a cross-sectional, time series dataset of 14 Italian airports for the period 2000-2004. In the sample there are the two international airport systems of Rome and Milan, each composed by two airports, and ten regional airports. The analysis of the industry characteristics have pointed out that both structural and institutional factors cause an high degrees of dissimilarities among the 14 Italians airports. In this framework comparing the efficiency could be troublesome and misleading at the same time. Thus the methodological goal of the paper has been the application of two multivariate techniques, factorial and cluster analysis, in order to reduces dissimilarities and improve the results of the efficiency measures. The two multivariate techniques help in determining variables which mostly affect the airports operational efficiencies. The operational efficiencies have been estimated using non parametric models. In particular, the modified Torqvinst index has been employed to measure both Total Factor Productivity (TFP) and Variable Factor Productivity (VFP) indexes. Moreover, in order to remove the effects of the variables beyond the managerial control the residual Total Factor Productivity (RTFP) and Variable Factor Productivity (RVFP) indexes have been computed.Factorial analysis; Cluster analysis; Torqvinst index; Productivity