Universal Journal of Accounting and Finance Vol. 3(2), pp. 52 - 82
DOI: 10.13189/ujaf.2015.030204
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The Spanish Airport-System: Lessons of Efficiency and Sustainability

Ane Elixabete Ripoll-Zarraga ^*
Department of Accounting, London School of Economics and Political Science, London, UK

ABSTRACT

This paper focuses on comparing the efficiency of the Spanish airports for four years (2009 to 2012). The Spanish airports are government owned and managed (AENA) under an airport-system network where non-profitable airports are cross-subsidized by profitable airports. The main discussion is if the decision-making process based on the centralisation of management may influence the efficiency of airports (technical efficiency). Furthermore, a financial analysis is performed to compare which airports although being not profitable from an accounting perspective may be using their current resources (infrastructure) efficiently. Since airports achieving profits cross-subsidized the ones that achieve negative gross margin, it could be discussed that airports with negative gross margins when technically efficient could obtain better financial results if competition is allowed. The methodology to calculate the technical efficiency level of the Spanish airports is based on non-parametric models DEA (Data Envelopment Analysis). The results show that the improvements among the years in the gross margin of the larger airports (such Barcelona and Madrid) are not a fair and true reflection their current operational performance, but a result of a centralised making-decision process (centralised management) among investments; depreciation and air fares. The results also show that airports increase significantly their technical efficiency when competing with similar-size airports, being the medium airports the ones that experience a higher increase of efficiency.

KEYWORDS
Airport-System, Competition, Data Envelopment Analysis, AENA, Regulation

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Ane Elixabete Ripoll-Zarraga , "The Spanish Airport-System: Lessons of Efficiency and Sustainability," Universal Journal of Accounting and Finance, Vol. 3, No. 2, pp. 52 - 82, 2015. DOI: 10.13189/ujaf.2015.030204.

(b). APA Format:
Ane Elixabete Ripoll-Zarraga (2015). The Spanish Airport-System: Lessons of Efficiency and Sustainability. Universal Journal of Accounting and Finance, 3(2), 52 - 82. DOI: 10.13189/ujaf.2015.030204.