The Technical Efficiency of French Regional Airports and Low-Cost Carrier Terminals

Seock-Jin Hong; Minjun Jeon

doi:10.20944/preprints201909.0053.v1

Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Version 1 : Received: 3 September 2019 / Approved: 5 September 2019 / Online: 5 September 2019 (03:42:32 CEST)

In France, the regional airport’s demand for services is facing challenges due to the continuous expansion of the high-speed train, high-speed line, and highway networks. This study focuses on the viability of regional airports in France through technical efficiency using data envelopment, principle component analysis, Malmquist productivity index, and regression analysis using bootstrapping. To face the current competitive environment, the regional airports in France adopted strategies, such as the construction of low-cost carrier (LCC) dedicated terminals (LCCTs) with lower expenses to attract more LCCs, increasing non-aeronautical revenue, and hosting regional hubs of LCCs. This is the first study that analyzes all of the French regional airports. The findings indicate that the existence of LCCTs positively affects technical efficiency on the airport’s performance, and share of LCCs at a regional airport leads to neither the efficiency nor the profit level.

French regional airports; technical efficiency; data envelopment and principle component analysis; Malmquist Productivity Index; low-cost carrier terminals; high-speed train

SOCIAL SCIENCES, Economics

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The Technical Efficiency of French Regional Airports and Low-Cost Carrier Terminals

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