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Journal of Air Transport Management Volume 8 Issue 4 2002 (Doi 10.1016 - s0969-6997 (02) 00003-0) Graham Francis Ian Humphreys Jackie Fry - The Benchmarking of Airport Performance
Journal of Air Transport Management Volume 8 Issue 4 2002 (Doi 10.1016 - s0969-6997 (02) 00003-0) Graham Francis Ian Humphreys Jackie Fry - The Benchmarking of Airport Performance
Journal of Air Transport Management Volume 8 Issue 4 2002 (Doi 10.1016 - s0969-6997 (02) 00003-0) Graham Francis Ian Humphreys Jackie Fry - The Benchmarking of Airport Performance
a
Performance Management Research Unit, Open University Business School, Walton Hall, Milton Keynes MK7 6AA, UK
Transport Studies Group, Department of Civil and Building Engineering, Loughborough University, Loughborough, Leicestershire LE11 3TU, UK
c
Performance Management Research Unit, Open University Business School, Walton Hall, Milton Keynes MK7 6AA, UK
Abstract
This paper examines how benchmarking is being used by airport managers as a means of internal performance comparison and
improvement. Drawing on interviews with airport managers and a questionnaire survey of the worlds top 200 busiest passenger
airports, the paper discusses the nature, prevalence and consequences of current benchmarking practices in airports. The authors
also include a review of the literature on airport benchmarking and a discussion of the characteristics and relevance of Best Practice
Benchmarking. r 2002 Elsevier Science Ltd. All rights reserved.
Keywords: Benchmarks; Airports; Best Practice Benchmarking
1. Introduction
Benchmarking is a performance improvement technique that is of potential importance to airports because
of the challenges they face. In recent years, airports have
increasingly moved from being public utilities that focus
on operations to businesses that also focus on commercial activities. Airport privatisation, commercialisation,
congestion of airport infrastructure, rapid growth of
trafc, the formation of global airport groups, airline
market de-regulation and alliances have combined to
create a dynamic and challenging market for airports
and their managers. Within the context of such a
dynamic market environment, benchmarking has become an increasingly important performance management tool that can be used to enable managers to both
monitor and improve aspects of their own operational
performance by reference to, and learning from, other
organisations.
The purpose of this paper is to examine how
benchmarking is being used by airport managers as a
means of internal performance comparison and improvement. A questionnaire survey was used to reveal
the nature and prevalence of benchmarking across the
*Corresponding author. Tel.: +44-1509-223422; fax: +44-1509223981.
E-mail addresses: g.a.j.francis@open.ac.uk (G. Francis), i.m.humphreys@lboro.ac.uk (I. Humphreys), j.fry@open.ac.uk (J. Fry).
1
Visiting Lecturer, Waikato University, New Zealand
0969-6997/02/$ - see front matter r 2002 Elsevier Science Ltd. All rights reserved.
PII: S 0 9 6 9 - 6 9 9 7 ( 0 2 ) 0 0 0 0 3 - 0
240
241
242
4. Methods
The main method by which data was gathered for this
paper was by means of a questionnaire survey as
outlined below. This built on an earlier pilot study that
was used to test the robustness of the questionnaire
instrument. Additional evidence has been gathered from
a series of semi-formal face-to-face interviews with
airport managers from European airports with over
one million passengers per annum. This sample included
different sized airports and information was collected on
the strict condition that they remained anonymous.
Each interviewee was asked about benchmarking and
the performance measures they used, their usefulness
and shortcomings. A number provided published
material specic to their particular airport.
Table 1
Geographic proles of the respondents and the sample
North America
Europe
Pacic
Asia
Latin America/Caribbean
Africa
Percentage of
sample airports
Percentage of
respondents
34
40
11
6
6
3
48
38
5
5
2
2
Percentage of
sample airports
Percentage of
respondents
14a
59
1019
20 and above
30
29
19
22
29
24
23
24
Table 3
Ownership structures of airports responding to survey
Type of ownership
Percentage of
sample airports
Percentage of
respondents
Public
Private
Part privatepart public
80
8
12
67
19
14
243
Table 4
Performance management techniques used by respondents
Technique
Percentage used
by respondentsa
46
41
36
27
25
23
23
12
9
5
244
Table 5
Locating benchmarking experiences
Similar organisations
1
14%
2
40%
78%
3
24%
-
4
16%
1
3%
2
5%
27%
3
19%
-
4
8%
1
8%
2
21%
50%
3
21%
-
4
32%
Internal comparisons
1
8%
2
24%
40%
3
8%
-
Specic tasks
1
5%
2
16%
37%
3
16%
-
Process improvement
5
3%
6
3%
6%
5
19%
6
38%
65%
5
3%
6
10%
18%
4
21%
5
10.5%
6
18%
39%
7
10.5%
-
4
22%
5
24%
6
14%
41%
7
3%
7
0%
Dissimilar organisations
7
8%
Performance measurement
7
5%
External comparisons
General practices
245
246
6. Conclusions
The motivation for this paper was to gain a better
understanding of benchmarking practices in airports
around the world. Whilst the survey revealed a rich
picture of different practices from which certain general
trends could be discerned, there is a potential danger in
over estimating the importance of benchmarking in
airports as only 72 per cent of airports reported be
involved in any form of benchmarking. Whilst the
survey did illustrate that many airports are engaged in
Best Practice Benchmarking (46 per cent) it also
indicated that many were not (54 per cent), and these
airports seem to have developed other ways of satisfying
their performance management requirements.
The term benchmarking is clearly being used to
encompass a wide range of different activities and it is
important that the expectations of the outcomes from
these differing activities in the name of benchmarking
reect their nature. There is a similar breadth in terms of
why the benchmarking activities were being undertaken
and in part this may be the driver for the breadth of
approaches undertaken.
Benchmarking has the potential to play an increasingly important role in performance management and
improvement at airports given the pressures coming
from changing ownership patterns, increased commercial business focus, regulation, rapid passenger growth,
globalisation of airport ownership, increased concern
for the natural environment and technical innovation.
Benchmarking is one performance management technique that might be used by managers to meet the
diverse challenges that they face from the dynamic
industry context. Performance improvement can create
competitive advantage and can offer potential to
improve the efciency and effectiveness of airport
management across the range of challenges, from coping
with increased pressure of trafc growth on terminal
facilities to managing community relations.
Acknowledgements
The Performance Management Research Unit, Open
University Business School, has kindly funded this
project. The authors wish to thank all those who took
part in this survey, Dr. Jacky Holloway, Open
University Business School and Dr. Robert Caves,
Transport Studies Group, Loughborough University.
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