Multidimensional Analysis of Airport Performance

Based on PhD Thesis by

GC
Background
Research Problem
Research Objectives
The Research
Time for Questions
Background

Performance Measurement
Growing interdiciplinary interest for decades.

◦ An effective PM is a key element for private and public organizations in a constantly

changing business environment.

◦ Organizations are compelled to improve their practices for measuring and analyzing
performance to be effective and competitive.

! Service operational settings have been less emphasized

(Intangible aspects of the service provision and Diversity of stakeholders).

Background

Complex
Airports Business

Multi-services firm (B2B and B2C)

“The Commercial Airport” Sociotechnical
System

Bundle of services and facilities

to meet a vast range of needs
(passengers, cargo, ancilliary
services)

Point (node) where people

Infrastructure
and goods exchange between
transport modals
Background

Current business model for Airports

◦ Commercial Airports (self-sufficient organizations - not dependent on Gov. support);

◦ Non-aeronautical revenues ever more important for airport sustainability;

◦ Loose of market power (?);

◦ Regulation on airport efficiency and service quality (Towards a performance-based

regulation ?);

◦ Shareholders demand relevant information on airport performance;

◦ Stakeholders´ needs lead to the multifaceted nature of airport performance.

Background

Airport performance measurement - Issues

◦ Increasing traffic demand;

◦ Deregulation process;

◦ Changing airport ownership and governance forms.

Research Problem

In this context....

◦ What are the relevant performance dimensions for the airport

business?

◦ What is the current profile of airport executives with regards to

performance measurement practices?

◦ How to integrate service quality measurement within the context of

airport management?
Research Objectives

◦ To identify performance dimensions emphasized in the airport-related literature;

◦ To examine PM practices in Brazilian airports, so that to identify the current profile of

airport operators with regards to PM;

◦ To provide a set of measures related to the stakeholders´ expectations on airport

performance;

◦ To propose a measurement model for ASQ accounting for the multifaceted nature of
the SQ construct;

◦ To examine the relationships among passenger perception on SQ and his/her attitude

towards the airport.
The Research

Essay

Airport Pax
Airport PM
Satisfaction
Model
Performance Practices

ASQ
Model
1. A Systematic Literature Review on APM

Specific Objectives

◦ To provide a comprehensive overview of the research related to

APM.
RQ:
How the literature has evolved since 1970s?
Which performance dimensions have been emphasized?

◦ To provide a framework for the airport performance dimensions.

1. A Systematic Literature Review on APM

Main contributions
◦ 1st study to examine the literature according to such a comprehensive
approach;

◦ 3 stages of literature evolution;

◦ A framework for the airport performance dimensions;

◦ Main performance dimensions: Efficiency and Service Quality;

◦ A research agenda is proposed.

The Research

Essay

Airport Pax
Airport PM
Satisfaction
Model
Performance Practices

ASQ
Model
2. Examining PM practices in BR Airports

Specific Objectives

◦ To identify the current profile of airport operators with

regards to the Frequency of Use, the Perceived Relevance,
and the Ease of Acquisiton of PM related to 11 performance
dimensions;

◦ To obtain an average profile of the PM practices in BR

airports.
2. Examining PM practices in BR Airports

Methods

◦ Population: BR Airports with at least 4 regular operations of ACFT cat. 3

(ANAC, Res. 115/2009)
◦ Approach: On line survey, Aug-Oct/2015
◦ Sample: 54 responses / Useful Sample: 31 responses
◦ Observation: Average response for each PM

◦ Data Analysis:
Cluster Analysis (K-mean method), Regression Analysis, and Gap Analysis.
2. Examining PM practices in BR Airports

2.1. Results (Cluster Analyses)

Frequency of Use

SOC
SEC
SAF
OPE
LOS
FIN
ENV
EFF
COP
COM
ASQ
-4 -3 -2 -1 0 1 2 3 4 5 6 7 8
2. Examining PM practices in BR Airports

2.1. Results (Cluster Analyses)

Perceived Relevance

SOC
SEC
SAF
OPE
LOS
FIN
ENV
EFF
COP
COM
ASQ
-4 -3 -2 -1 0 1 2 3 4 5 6 7 8
 2. Examining PM practices in BR Airports

2.1. Results (Cluster Analyses)

Ease of Acquisition
SOC

SEC

SAF

OPE

LOS

FIN

ENV

EFF

COP

COM

ASQ

-4 -3 -2 -1 0 1 2 3 4 5 6 7 8
 2. Examining PM practices in BR airports

2.2. Regression Analysis

◦ Provides average behavior profile of FU for the PMs.
◦ First: The effects of PR and EA on the FU according to the linear regression model:
FUi = -0.713 + 0.618PRi + 0.484EAi

oSecond: Including the effects of Airport Size:

FUi = -0.776 + 0.653PRi + 0.462EAi + 0.036ASi
2. Examining PM practices in BR airports

2.3. Gap Analysis

o To examine the reasons for the apparent lack of relative use of some PM.
The differences between the scores for PR and EA for the 77 measures are
o
multiplied by their PR values to find the GAP indicator:
GAPi = (PRi – EAi)PRi
2. Examining PM practices in BR airports

Main contributions

◦ Provides an overview of the PM practices in BR airports;

◦ Supports decision-making process as regards performance-based

regulation approach;

◦ Methodology can be used as regulatory tool for MS

implementation and performance oversight;

◦ A set of PM is delivered.
The Research

Essay

Airport Pax
Airport PM
Satisfaction
Model
Performance Practices

ASQ
Model
 3. Measuring ASQ: A multidimensional approach

Specific Objectives
◦ To develop an ASQ model that covers the multifaceted nature of the SQ construct.

4 STAGES
3. Measuring ASQ: A multidimensional approach

Methods
◦ Population:
Departing PAX at SBGR and SBSP
◦ Approach:
Survey (interview and self-response)
Departure lounges/Peak hours/Probability systematic sampling
◦ Samples:
SBGR – 2,485 / Useful Sample: 1,155 (762 INT; 393 DOM)
SBSP – 503 / Useful Sample: 447
◦ Observation unit: Passenger responses
Obs: Measurement items based on industry practices (ACI, IATA, SAC/BR) and research
literature (Bezerra & Gomes, 2015).
◦ Data Analysis:
Exploratory Factor Analysis and Confirmatory Factor Analysis.
3. Measuring ASQ: A multidimensional approach

Exploratory Study
Bezerra, G.C.L., & Gomes, C.F. (2015) The effects of service quality dimensions and passenger
characteristics on passenger satisfaction with an airport. Journal of Air Transport Management, 44-
45, p. 77-81.
3. Measuring ASQ: A multidimensional approach

First-order ASQ model

Validity!

Content,
Convergent,
Discriminant!

Reliability!
3. Measuring ASQ: A multidimensional approach

First-order ASQ model

◦ Model is invariant for
DOM and INT
Departing PAX:
ΔX2
ΔCFI

◦ Factor loadings are

Standardized
Regression Weights!
 3. Measuring ASQ: A multidimensional approach

Higher-Order ASQ model

◦ Cross validated for SBGR and SBSP:
ΔX2
ΔCFI

◦ ASQ scores are obtained from the Factor

Score Weights!

Predicting the unobserved variables from

the observed variables.
3. Measuring ASQ: A multidimensional approach

Higher-Order ASQ model

ASQ score for SBSP:

ASQscore = .068*MOB1 + .082*MOB2 + .036*MOB3 + .047*BAS1 + .051*BAS2 +

.037*BAS3 + .059*AMB1 + .032*AMB2 + .029*AMB3 + .074*CON1 +
.099*CON3 + .044*CON5 + .042*SEC1 + 041*SEC2 + .047*SEC3 + .028*SEC4 +
.014*CHK1 + .039*CHK2 + .024*CHK3

ASQ score ≠ Level of Satisfaction

Satisfaction is necessarily dependent on other constructs (perceived value,

expectation, image, etc.)!
3. Measuring ASQ: A multidimensional approach

Main contributions
◦ Provides ASQ model for measuring the perceived ASQ;
◦ Methodology for calculating ASQ scores;
Obs: The score can be used for multivariate analysis (Cluster Analysis,
Regression, etc.)
◦ The ASQ Model can be used for operationalization of SQ construct
in Structural Models (causal models);
◦ Approach used can be applied to other context/problem.
The Research

Essay

Airport Pax
Airport PM
Satisfaction
Model
Performance Practices

ASQ
Model
 4. Airport Passenger Satisfaction Model - APSM

Specific Objectives
◦ To examine the relationships among the passenger perception of ASQ
and his/her attitude towards the airport.

Approach based on the antecedentes and consequences of PAX satisfaction with the airport, thus:

a. To examine the effects of the antecedentes of CS in the passenger satisfaction with the airport;
b. To test for the suitability of the ASQ model within the PAX satisfaction model (nomological validity);
c. To examine the effects of Satisfaction in the passenger atitude loyalty towards the airport;
d. To examine the effects of the Switching Costs for changing airports in the passenger loyalty atitude
in a multi-airport region.
4. Airport Passenger Satisfaction Model - APSM

Methods
◦ Population:
Departing PAX at SBSP
◦ Approach:
Survey (self-response)
Departure lounges/Peak hours/Probability systematic sampling
◦ Samples:
SBSP – 503 / Useful Sample: 443
◦ Observation unit: Passenger responses
Obs: Measurement items based on ASQ model by Bezerra & Gomes (2016)
and research literature.
◦ Data Analysis:
Structural Equation Modelling – SEM (Covariance Matrix by MLE)
4. Airport Passenger Satisfaction Model - APSM

Theoretical Model

H6+
H1c+
H1b+ H4a+
H1a+ H3+ H5-
H2a+ H4b-
H2b+
3. Measuring ASQ: A multidimensional approach

Two-step approach
◦ Measurement model with acceptable goodness-of-fit
◦ Path Analysis (Standardized Regression Weights
Estimate
Measure Hypothesized causal relationship
Value Hypothesis C.R. p-value Supported
λ
CMIN/df
Expectation 2,259
----> Perceived service quality H1a(+) 0,141 2,402 ** Yes
RMSEA
Expectation 0,053
---->]0,050: 0,057]
Perceived value H1b(+) 0,044 0,909 n.s. No
Expectation
GFI ---->
0,850 Satisfaction H1c(+) -0,001 -0,032 n.s. No
Perceived service quality ----> Value H2a(+) 0,643 9,356 *** Yes
PGFI 0,745
Perceived service quality ----> Satisfaction H2b(+) 0,506 7,365 *** Yes
CFI 0,904
Perceived value ----> Satisfaction H3(+) 0,45 7,59 *** Yes
PCFI
Satisfaction
0,834
----> Loyalty H4a(+) 0,314 5,896 *** Yes
TLI
Satisfaction 0,896
----> Complaints H4b(-) -0,413 -6,865 *** Yes
IFI
Complaints 0,904
----> Loyalty H5(-) -0,065 -1,267 n.s No
Switching costs ----> Loyalty H6(+) 0,707 12,073 *** Yes
4. Airport Passenger Satisfaction Model - APSM

Estimates

0,707 R2 = 0,63
-0,001
0,044 R2 = 0,79 0,314
0,141 0,450 -0,065
R2 = 0,45
R2 = 0,02 0,643 -0,413
0,506
R2 = 0,15
4. Airport Passenger Satisfaction Model - APSM

Main contributions
◦ Provides a model for PAX Satisfaction with an Airport;
◦ Stresses relationships between PAX satisfaction and its
antecedentes and consequences;
◦ Explains PAX satisfaction and PAX attitude;
◦ Highlights the relevance of the existence of switching costs for PAX
loyalty towards the airport;
◦ The ASQ Model can be used for operationalization of SQ construct
in causal models (nomological validity).
The Research

Essay

Airport Pax
Airport PM
Satisfaction
Model
Performance Practices

ASQ
Model