[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i7p4222-d785659.html
   My bibliography  Save this article

Exploring the Performance of International Airports in the Pre- and Post-COVID-19 Era: Evidence from Incheon International Airport

Author

Listed:
  • Mehdi Shamohammadi

    (Graduate School of Logistics, Inha University, 100 Inha-ro, Incheon 22212, Korea)

  • Yonghwa Park

    (Graduate School of Logistics, Inha University, 100 Inha-ro, Incheon 22212, Korea)

  • Jong Hae Choi

    (Graduate School of Logistics, Inha University, 100 Inha-ro, Incheon 22212, Korea)

  • Oh Kyoung Kwon

    (Graduate School of Logistics, Inha University, 100 Inha-ro, Incheon 22212, Korea)

Abstract
Considering the socio-economic importance of Incheon International Airport, this study explored the changes in its aeronautical and non-aeronautical efficiency between 2001 and 2021. The study was conducted to measure and observe the changes in efficiency during the pre- and post-pandemic era of COVID-19. We employed a two-stage analytical approach to obtain the results using a set of desirable and undesirable variables. For the first stage, we employed a novel network data envelopment analysis–window analysis model to find the efficiency measures; for the second stage, we applied the Tobit regression analysis to observe the impact of some control variables on efficiency levels. The empirical results from the efficiency analysis stage revealed that, although the pandemic negatively affected the efficiency of this airport, the gain from appropriate strategies mitigated the excessive efficiency decline. Moreover, aeronautical activities showed better efficiency than non-aeronautical activities during the study period. In addition, further investigation of the second-stage analysis implied that an outbreak of pandemic diseases such as COVID-19 would dramatically impact international hubs such as Incheon International Airport; however, focusing on the import and export activities, in addition to increasing the connectivity with other airports, would improve the efficiency.

Suggested Citation

  • Mehdi Shamohammadi & Yonghwa Park & Jong Hae Choi & Oh Kyoung Kwon, 2022. "Exploring the Performance of International Airports in the Pre- and Post-COVID-19 Era: Evidence from Incheon International Airport," Sustainability, MDPI, vol. 14(7), pages 1-22, April.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:7:p:4222-:d:785659
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/7/4222/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/14/7/4222/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Huynh, Triet Minh & Kim, Gyuseung & Ha, Hun-Koo, 2020. "Comparative analysis of efficiency for major Southeast Asia airports: A two-stage approach," Journal of Air Transport Management, Elsevier, vol. 89(C).
    2. Kiani Mavi, Reza & Saen, Reza Farzipoor & Goh, Mark, 2019. "Joint analysis of eco-efficiency and eco-innovation with common weights in two-stage network DEA: A big data approach," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 553-562.
    3. Lee, Yung-Kil & Park, Jin-Woo, 2016. "Impact of a sustainable brand on improving business performance of airport enterprises: The case of Incheon International Airport," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 46-53.
    4. Nurhafiza Md Hamzah & Ming-Miin Yu & Kok Fong See, 2021. "Assessing the efficiency of Malaysia health system in COVID-19 prevention and treatment response," Health Care Management Science, Springer, vol. 24(2), pages 273-285, June.
    5. Mahmoudi, Reza & Emrouznejad, Ali & Shetab-Boushehri, Seyyed-Nader & Hejazi, Seyed Reza, 2020. "The origins, development and future directions of data envelopment analysis approach in transportation systems," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).
    6. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2001. "Relative efficiency of European airports," Transport Policy, Elsevier, vol. 8(3), pages 183-192, July.
    7. Fragoudaki, Alexandra & Giokas, Dimitris, 2016. "Airport performance in a tourism receiving country: Evidence from Greece," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 80-89.
    8. Güner, Samet & İbrahim Cebeci, Halil, 2021. "Multi-period efficiency analysis of major European and Asian airports under fixed proportion technologies," Transport Policy, Elsevier, vol. 107(C), pages 24-42.
    9. Kuosmanen, Timo & Cherchye, Laurens & Sipilainen, Timo, 2006. "The law of one price in data envelopment analysis: Restricting weight flexibility across firms," European Journal of Operational Research, Elsevier, vol. 170(3), pages 735-757, May.
    10. Avkiran, Necmi K., 2009. "Opening the black box of efficiency analysis: An illustration with UAE banks," Omega, Elsevier, vol. 37(4), pages 930-941, August.
    11. Gillen, David & Lall, Ashish, 1997. "Developing measures of airport productivity and performance: an application of data envelopment analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(4), pages 261-273, December.
    12. Robert Stefko & Beata Gavurova & Kristina Kocisova, 2018. "Healthcare efficiency assessment using DEA analysis in the Slovak Republic," Health Economics Review, Springer, vol. 8(1), pages 1-12, December.
    13. Tsui, Wai Hong Kan & Gilbey, Andrew & Balli, Hatice Ozer, 2014. "Estimating airport efficiency of New Zealand airports," Journal of Air Transport Management, Elsevier, vol. 35(C), pages 78-86.
    14. Örkcü, H. Hasan & Balıkçı, Cemal & Dogan, Mustafa Isa & Genç, Aşır, 2016. "An evaluation of the operational efficiency of turkish airports using data envelopment analysis and the Malmquist productivity index: 2009–2014 case," Transport Policy, Elsevier, vol. 48(C), pages 92-104.
    15. Thanh Pham Thien Nguyen & Eduardo Roca & Parmendra Sharma, 2014. "How efficient is the banking system of Asia's next economic dragon? Evidence from rolling DEA windows," Applied Economics, Taylor & Francis Journals, vol. 46(22), pages 2665-2684, August.
    16. Wanke, Peter F., 2013. "Physical infrastructure and flight consolidation efficiency drivers in Brazilian airports: A two-stage network-DEA approach," Journal of Air Transport Management, Elsevier, vol. 31(C), pages 1-5.
    17. Mette Asmild & Joseph Paradi & Vanita Aggarwall & Claire Schaffnit, 2004. "Combining DEA Window Analysis with the Malmquist Index Approach in a Study of the Canadian Banking Industry," Journal of Productivity Analysis, Springer, vol. 21(1), pages 67-89, January.
    18. Pulina, Manuela & Detotto, Claudio & Paba, Antonello, 2010. "An investigation into the relationship between size and efficiency of the Italian hospitality sector: A window DEA approach," European Journal of Operational Research, Elsevier, vol. 204(3), pages 613-620, August.
    19. Lim, Sungmook & Zhu, Joe, 2016. "A note on two-stage network DEA model: Frontier projection and duality," European Journal of Operational Research, Elsevier, vol. 248(1), pages 342-346.
    20. Chen, Ying-Hsiu & Lai, Po-Lin & Piboonrungroj, Pairach, 2017. "The relationship between airport performance and privatisation policy: A nonparametric metafrontier approach," Journal of Transport Geography, Elsevier, vol. 62(C), pages 229-235.
    21. Ripoll-Zarraga, Ane Elixabete & Mar-Molinero, Cecilio, 2020. "Exploring the reasons for efficiency in Spanish airports," Transport Policy, Elsevier, vol. 99(C), pages 186-202.
    22. Park, Yonghwa, 2003. "An analysis for the competitive strength of Asian major airports," Journal of Air Transport Management, Elsevier, vol. 9(6), pages 353-360.
    23. Myung Je Lee & Changhee Kim, 2018. "A network DEA aeronautical and non-aeronautical production model: an application to South Korea airports," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-12, December.
    24. Fu, Qian & Kim, Amy M., 2016. "Supply-and-demand models for exploring relationships between smaller airports and neighboring hub airports in the U.S," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 67-79.
    25. Charnes, A. & Cooper, W. W. & Huang, Z. M. & Sun, D. B., 1990. "Polyhedral Cone-Ratio DEA Models with an illustrative application to large commercial banks," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 73-91.
    26. Lam, Shao Wei & Low, Joyce M.W. & Tang, Loon Ching, 2009. "Operational efficiencies across Asia Pacific airports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(4), pages 654-665, July.
    27. John Wong, 2013. "A China-centric economic order in East Asia," Asia Pacific Business Review, Taylor & Francis Journals, vol. 19(2), pages 286-296, April.
    28. Lozano, Sebastián, 2016. "Slacks-based inefficiency approach for general networks with bad outputs: An application to the banking sector," Omega, Elsevier, vol. 60(C), pages 73-84.
    29. A. Charnes & W. W. Cooper, 1962. "Programming with linear fractional functionals," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 9(3‐4), pages 181-186, September.
    30. Button, Kenneth & Kramberger, Tomaž & Grobin, Klemen & Rosi, Bojan, 2018. "A note on the effects of the number of low-cost airlines on small tourist airports' efficiencies," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 92-97.
    31. Yu, Ming-Miin, 2004. "Measuring physical efficiency of domestic airports in Taiwan with undesirable outputs and environmental factors," Journal of Air Transport Management, Elsevier, vol. 10(5), pages 295-303.
    32. Yu, Ming-Miin, 2010. "Assessment of airport performance using the SBM-NDEA model," Omega, Elsevier, vol. 38(6), pages 440-452, December.
    33. Chi-Lok, Andrew Yuen & Zhang, Anming, 2009. "Effects of competition and policy changes on Chinese airport productivity: An empirical investigation," Journal of Air Transport Management, Elsevier, vol. 15(4), pages 166-174.
    34. W. Liu & W. Meng & X. Li & D. Zhang, 2010. "DEA models with undesirable inputs and outputs," Annals of Operations Research, Springer, vol. 173(1), pages 177-194, January.
    35. Wang, James J. & Heinonen, Timo H., 2015. "Aeropolitics in East Asia: An institutional approach to air transport liberalisation," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 176-183.
    36. Wang, Zhanwei & Song, Woon-Kyung, 2020. "Sustainable airport development with performance evaluation forecasts: A case study of 12 Asian airports," Journal of Air Transport Management, Elsevier, vol. 89(C).
    37. Laure Latruffe & Boris E. Bravo-Ureta & Alain Carpentier & Yann Desjeux & Víctor H. Moreira, 2017. "Subsidies and Technical Efficiency in Agriculture: Evidence from European Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 783-799.
    38. Angeliki Flokou & Vassilis Aletras & Dimitris Niakas, 2017. "A window-DEA based efficiency evaluation of the public hospital sector in Greece during the 5-year economic crisis," PLOS ONE, Public Library of Science, vol. 12(5), pages 1-26, May.
    39. Tae-Woong Yang & Joon-Ho Na & Hun-Koo Ha, 2019. "Comparative Analysis of Production Possibility Frontier in Measuring Social Efficiency with Data Envelopment Analysis: An Application to Airports," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
    40. Vanessa Liebert & Hans-Martin Niemeier, 2013. "A Survey of Empirical Research on the Productivity and Efficiency Measurement of Airports," Journal of Transport Economics and Policy, University of Bath, vol. 47(2), pages 157-189, May.
    41. Barros, Carlos Pestana, 2008. "Airports in Argentina: Technical efficiency in the context of an economic crisis," Journal of Air Transport Management, Elsevier, vol. 14(6), pages 315-319.
    42. Lawrence M. Seiford & Joe Zhu, 1999. "Profitability and Marketability of the Top 55 U.S. Commercial Banks," Management Science, INFORMS, vol. 45(9), pages 1270-1288, September.
    43. Hung-jen Wang & Peter Schmidt, 2002. "One-Step and Two-Step Estimation of the Effects of Exogenous Variables on Technical Efficiency Levels," Journal of Productivity Analysis, Springer, vol. 18(2), pages 129-144, September.
    44. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    45. Seiford, Lawrence M. & Zhu, Joe, 2002. "Modeling undesirable factors in efficiency evaluation," European Journal of Operational Research, Elsevier, vol. 142(1), pages 16-20, October.
    46. Fabio Carlucci & Andrea Cirà & Paolo Coccorese, 2018. "Measuring and Explaining Airport Efficiency and Sustainability: Evidence from Italy," Sustainability, MDPI, vol. 10(2), pages 1-17, February.
    47. Juan Martín & Concepción Román & Augusto Voltes-Dorta, 2009. "A stochastic frontier analysis to estimate the relative efficiency of Spanish airports," Journal of Productivity Analysis, Springer, vol. 31(3), pages 163-176, June.
    48. Kao, Chiang & Hwang, Shiuh-Nan, 2008. "Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan," European Journal of Operational Research, Elsevier, vol. 185(1), pages 418-429, February.
    49. Oum, Tae H. & Yan, Jia & Yu, Chunyan, 2008. "Ownership forms matter for airport efficiency: A stochastic frontier investigation of worldwide airports," Journal of Urban Economics, Elsevier, vol. 64(2), pages 422-435, September.
    50. Adler, Nicole & Liebert, Vanessa & Yazhemsky, Ekaterina, 2013. "Benchmarking airports from a managerial perspective," Omega, Elsevier, vol. 41(2), pages 442-458.
    51. Shamohammadi, Mehdi & Oh, Dong-hyun, 2019. "Measuring the efficiency changes of private universities of Korea: A two-stage network data envelopment analysis," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    52. Liu, Dan, 2017. "Evaluating the multi-period efficiency of East Asia airport companies," Journal of Air Transport Management, Elsevier, vol. 59(C), pages 71-82.
    53. Chaouk, Mohammed & Pagliari, Dr Romano & Moxon, Richard, 2020. "The impact of national macro-environment exogenous variables on airport efficiency," Journal of Air Transport Management, Elsevier, vol. 82(C).
    54. Fernández, Xosé Luis & Coto-Millán, Pablo & Díaz-Medina, Benito, 2018. "The impact of tourism on airport efficiency: The Spanish case," Utilities Policy, Elsevier, vol. 55(C), pages 52-58.
    55. Laure Latruffe & Boris E. Bravo-Ureta & Alain Carpentier & Yann Desjeux & Víctor H. Moreira, 2017. "Subsidies and Technical Efficiency in Agriculture: Evidence from European Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 783-799.
    56. Liu, Wenbin & Zhou, Zhongbao & Ma, Chaoqun & Liu, Debin & Shen, Wanfang, 2015. "Two-stage DEA models with undesirable input-intermediate-outputs," Omega, Elsevier, vol. 56(C), pages 74-87.
    57. Akther, Syed & Fukuyama, Hirofumi & Weber, William L., 2013. "Estimating two-stage network Slacks-based inefficiency: An application to Bangladesh banking," Omega, Elsevier, vol. 41(1), pages 88-96.
    58. Liu, Dan, 2016. "Measuring aeronautical service efficiency and commercial service efficiency of East Asia airport companies: An application of Network Data Envelopment Analysis," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 11-22.
    59. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2007. "Data Envelopment Analysis," Springer Books, Springer, edition 0, number 978-0-387-45283-8, December.
    60. lo Storto, Corrado, 2018. "The analysis of the cost-revenue production cycle efficiency of the Italian airports: A NSBM DEA approach," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 77-85.
    61. Ennen, David & Batool, Irem, 2018. "Airport efficiency in Pakistan - A Data Envelopment Analysis with weight restrictions," Journal of Air Transport Management, Elsevier, vol. 69(C), pages 205-212.
    62. Hong, Seock-Jin & Savoie, Michael & Joiner, Steve & Kincaid, Timothy, 2022. "Analysis of airline employees’ perceptions of corporate preparedness for COVID-19 disruptions to airline operations," Transport Policy, Elsevier, vol. 119(C), pages 45-55.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Güner, Samet & Seçkin Codal, Keziban, 2024. "Airport productivity and network centrality in the pandemic outbreak: Lessons from the Turkish airports," Journal of Air Transport Management, Elsevier, vol. 115(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chaouk, Mohammed & Pagliari, Dr Romano & Moxon, Richard, 2020. "The impact of national macro-environment exogenous variables on airport efficiency," Journal of Air Transport Management, Elsevier, vol. 82(C).
    2. Wang, Zhanwei & Song, Woon-Kyung, 2020. "Sustainable airport development with performance evaluation forecasts: A case study of 12 Asian airports," Journal of Air Transport Management, Elsevier, vol. 89(C).
    3. Fragoudaki, Alexandra & Giokas, Dimitrios, 2020. "Airport efficiency in the dawn of privatization: The case of Greece," Journal of Air Transport Management, Elsevier, vol. 86(C).
    4. Cifuentes-Faura, Javier & Faura-Martínez, Ursula, 2023. "Measuring Spanish airport performance: A bootstrap data envelopment analysis of efficiency," Utilities Policy, Elsevier, vol. 80(C).
    5. Güner, Samet & İbrahim Cebeci, Halil, 2021. "Multi-period efficiency analysis of major European and Asian airports under fixed proportion technologies," Transport Policy, Elsevier, vol. 107(C), pages 24-42.
    6. Maria Rosa Nieto & Rafael Bernardo Carmona-Benítez, 2021. "An Approach to Measure the Performance and the Efficiency of Future Airport Infrastructure," Mathematics, MDPI, vol. 9(16), pages 1-28, August.
    7. Güner, Samet & Cebeci, Halil İbrahim, 2021. "Output targeting and capacity utilization for a new-built airport: Analysis for the new airport in Istanbul," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    8. Thomas, Nivea & Jha, Kumar Neeraj, 2022. "Structural efficiency assessment of regional airports: Lessons from India," Utilities Policy, Elsevier, vol. 79(C).
    9. Kaya, Gizem & Aydın, Umut & Karadayı, Melis Almula & Ülengin, Füsun & Ülengin, Burç & İçken, Ayhan, 2022. "Integrated methodology for evaluating the efficiency of airports: A case study in Turkey," Transport Policy, Elsevier, vol. 127(C), pages 31-47.
    10. Myung Je Lee & Changhee Kim, 2018. "A network DEA aeronautical and non-aeronautical production model: an application to South Korea airports," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-12, December.
    11. Liu, Dan, 2016. "Measuring aeronautical service efficiency and commercial service efficiency of East Asia airport companies: An application of Network Data Envelopment Analysis," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 11-22.
    12. Kan Tsui, Wai Hong & Balli, Hatice Ozer & Gilbey, Andrew & Gow, Hamish, 2014. "Operational efficiency of Asia–Pacific airports," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 16-24.
    13. lo Storto, Corrado, 2018. "The analysis of the cost-revenue production cycle efficiency of the Italian airports: A NSBM DEA approach," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 77-85.
    14. Zou, Bo & Kafle, Nabin & Chang, Young-Tae & Park, Kevin, 2015. "US airport financial reform and its implications for airport efficiency: An exploratory investigation," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 66-78.
    15. Fabio Carlucci & Andrea Cirà & Paolo Coccorese, 2018. "Measuring and Explaining Airport Efficiency and Sustainability: Evidence from Italy," Sustainability, MDPI, vol. 10(2), pages 1-17, February.
    16. Yu, Ming-Miin & Rakshit, Ipsita, 2023. "Assessing the dynamic efficiency and technology gap of airports under different ownerships: A union dynamic NDEA approach," Omega, Elsevier, vol. 119(C).
    17. Huynh, Triet Minh & Kim, Gyuseung & Ha, Hun-Koo, 2020. "Comparative analysis of efficiency for major Southeast Asia airports: A two-stage approach," Journal of Air Transport Management, Elsevier, vol. 89(C).
    18. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min, 2016. "Research fronts in data envelopment analysis," Omega, Elsevier, vol. 58(C), pages 33-45.
    19. Örkcü, H. Hasan & Balıkçı, Cemal & Dogan, Mustafa Isa & Genç, Aşır, 2016. "An evaluation of the operational efficiency of turkish airports using data envelopment analysis and the Malmquist productivity index: 2009–2014 case," Transport Policy, Elsevier, vol. 48(C), pages 92-104.
    20. Riccardo Gianluigi Serio & Maria Michela Dickson & Diego Giuliani & Giuseppe Espa, 2022. "Toward environmental sustainability: an empirical study on airports efficiency," Papers 2210.02736, arXiv.org, revised Mar 2024.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:7:p:4222-:d:785659. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.