Assessing the Nonaviation Performance of Selected US Airports

Abstract

Abstract This article applies econometric analysis to identify the determinants of nonaeronautical revenues and rent payments at selected US airports, based on a panel data set from 2000 to 2008. The study focuses on specialty retail and food and beverage (F&B) services, which are the major nonaviation activities at US airports, in addition to parking and rental car services. The performance of specialty retail and F&B is influenced by characteristics such as concession space and number and characteristics of passengers—in particular, domestic versus international, leisure versus business, and origin and destination (O&D) versus connecting passengers. The article illustrates how different passenger types contribute to specialty retail and F&B revenue, and how specialty retail and F&B revenues differ in their contributions to rent payments to airports. We also show how nonaviation performance differs for terminals serving only low-cost carriers (LCCs) and terminals that serve full-service airlines.

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