BIA efficiency rated low and cost competitiveness better among Asian airport

Sri Lanka’s main international airport, the BIA, has been rated very low in efficiency according to the latest survey of productivity among global airports.
In terms of Gross Variable Factor Productivity (VFP) among Asian airports and in terms of Gross variable factor productivity versus residual VFP as well as Residual (Net) variable factor productivity (VFP) Colombo was ranked 25th out of 37 Asian airports surveyed.
The rating has been done by the Airport Transport Research Society (ATRS), the world’s leading academic society in the air transportation field and is included in the Annual Global Airport Benchmarking Report. KAC’s Gimhae International Airport in City of Busan, the largest city in southern part of South Korea, won the 2014 ATRS Top Asian Airport Efficiency Excellence Award, and furthermore, KAC’s Jeju International Airport became the second most efficient airport in Asia.
However in terms of cost competitiveness, the Bandaranaike International Airport has fared relatively better at 7th place with Haikou, Busan Gimhae, Jakarta as number one. Combined landing and passengers charges for Boeing 737-800 in US dollar basis, Colombo was the 41st most expensive and Tapei and New Delhi as the lowest and Osaka Kansai, Nagoya as the airport with highest charges.
Hartsfield-Jackson Atlanta International Airport in Atlanta, GA, won its 11th top efficiency excellence award this year during the 12 year history of ATRS airport efficiency awards which began in 2003.
The 2014 study assessed around 200 airports globally to provide a comprehensive, unbiased comparison of airport performance focusing on productivity and Operating/Management Efficiency; Unit Cost Competitiveness; and Airport User Charges. The study did not treat service quality differentials across airports because of research resource constraints
The airport productivity index is measured under outputs aircraft movement, passenger, cargo tonnage, non-aeronautical revenue output and as inputs labour, other non-capital inputs and runways, terminal size as well as number of gates.
Efficiency measurements was Variable Factor Productivity (VFP) Index since Total Factor Productivity (TFP) is impossible because of capital input cost accounting problem (comparable across different countries). The Unit Operating Cost Competitiveness Index combined VFP and Input Price Index.
ATRS said potential reasons for measured productivity (Gross VFP) differentials were factors beyond managerial control such as airport size (scale of aggregate output), Average aircraft size using the airport, share of international traffic, share of air cargo traffic, extent of capacity shortage – congestion delay and connecting/transfer ratio.
After being on rotation for a decade on the top spot, Asia’s prominent major airports like Singapore’s Changi, Seoul-Incheon, Hong Kong International airports have been trumped by the three smaller Airports managed Korea Airports Corporation (KAC) since year 2012.
Seoul-Gimpo airport also managed by KAC was the top efficient airport in Asia consecutively in 2012 and 2013 although it fell to 5th spot in Asia behind Gimhae, Jeju, Hong Kong and Haikou (southern China).
Sydney Airport successfully defended the top productivity and efficiency performance title in Oceania; this makes Sydney’s fourth win in a row.
Other rising star in Asia in terms of efficient operation and management of airport is Haikou International Airport which is located on China’s southern island province for which the Chinese Government designated it sometime ago as the “Open Skies” province, which frees foreign airlines’ access to that airport.
Per passenger basis, London’s Heathrow and Gatwick (peak period) landing fees are highest, and Tokyo Haneda and Sydney airports also charge highest landing fees in Asia and Oceania, respectively. The landing fees per passenger at Toronto Pearson International airport came down very significantly in the past few years, and thus, in this year New York’s LaGuardia airport became the most expensive airport to land an aircraft in North America per passenger basis.
Copenhagen Airport won the top productivity and highly efficient airport in Europe. Among the small/med-size airport category, Athens International Airport took this year’s ATRS Top Efficiency Excellence Award.