The relationship between size and efficiency: A benchmarking analysis of Spanish commercial airports

Abstract

Most airports have previously compared their efficiency according to the results of partial productivity ratios. However, such an approach does not provide a good understanding of the overall performance. This paper uses four different approaches to data envelopment analysis (DEA) to analyse the relative performance of individual Spanish airports and to rank each airport's efficiency. The first approach uses a cross-efficiency matrix, in which airports are evaluated according to their own weights and those of their rivals. The second and third approaches rank performance through the exclusion of the airport being analysed; in DEA parlance, these are known as super-efficiency models. The final approach analyses the virtual airport and compares all other airports with this ‘champion performer’. Each method is used to measure and compare the efficiency of Spanish commercial airports, and potential differences for large, medium and small airports are studied. The study is based on financial and operational data, such as aircraft movements, passengers, freight, capital, labour and material costs.