• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2022.06a
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• pp.204-206
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• 2022

The global economy and the air transport business have been affected since the spread of the COVID-19 pandemic. As countries tighten restrictions on international movements, the growing emphasis on air cargo puts pressure on airports to maintain and upgrade their cargo policies, facilities, and operations. Hence, ensuring the competitiveness of cargo airports becomes pivotal for airports survival under the volatile global demand. The study aims to evaluate the importance of the competitiveness factors for cargo airports and identify areas for further improvement. The study applies the Best-Worst Method (BWM) to assess the cargo airports' competitiveness factors: 'Transport Capacity,' 'Airport Operations and Facility Capacity,' 'Economic Growth,' 'Financial Performance,' and 'Airport Brand Value.' The selected airports include Heathrow Airport, Aéroport de Paris-Charles de Gaulle, Hong Kong International Airport, and Incheon International Airport. The results identify 'Transport Capacity' as the most significant competitiveness factor, and Hong Kong International Airport the best performing cargo airport. This research forms a reference framework for evaluating cargo airports' competitive position, which may help identify airports' relative strengths and weaknesses. Moreover, this framework can also serve as a tool facilitating the strategic design of airports that may accommodate both air cargo and passenger demand flexibly under the demand uncertainty.

• Journal of Korean Society of Transportation
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• v.35 no.5
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• pp.434-446
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• 2017

This study was carried out to suggest new indicators to be used at airports. Generally, passengers and cargo will be handled at the airport, and the airport will achieve revenues through them. However, all airports can not have the same distribution of passenger and cargo throughput. When comparing and analyzing several airports, a uniform result can be expected only if a unit airport throughput indicator is applied. The 'Work Load Unit' is an indicator that integrates passengers and cargo into one, and assumes that the value of one passenger is equivalent to the cargo volume of 100kg. The existing WLU was set up based on the experience at the airport rather than being established through reasonable grounds or analysis, so there was a lot of controversy. The purpose of this study is to overcome these limitations and to suggest new index. In this study, we applied a method to compare the relative value of cargo and passenger to airport revenue. In order to analyze cargo value and passenger value, airport revenues are classified into aircraft operation related revenues, passenger handling related revenues, and commercial revenues. A total of 50 airports were selected, including 14 airports in Asia, 18 airports in Europe and 18 airports in North America. According to the final analysis results, it is concluded that the cargo is equivalent to 280kg of cargo based on the contribution of one passenger averagely. This is higher than the value of 100Kg cargo per passenger.

• Journal of Korea Port Economic Association
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• v.31 no.3
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• pp.93-105
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• 2015

The purpose of this study is to outline the strategic implications of a structure analysis and trends of transferred air cargoes for the main airports of the North Asian region for 13 years from 2000 to 2012. To do so, it analyses the concentration levels using a Gini coefficient and Hirschmann Herfindahl index and represents the competitive positioning with regard to the main East Asian airports using the BCG framework and shift-share analysis. Currently, the concentration level is getting weaker in response to the emergence of Chinese airports in the north-east region. It is likely that the steady growth of air cargo of Shanghai airport (PVG) has caused the increase in concentration levels in the region. Seoul airport (ICN) may be directly in competition with PVG for air cargo in the region, giving consideration to reducing or maintaining an average increase ratio of air cargoes of ICN, NRT (Tokyo), and KIX (Osaka) for same period. In the same sense, the average increase in ratio for ICN for same period yields 1.3%, which is far behind the 6.2% and 5.2% of the north-east region and PVG respectively. Additionally, shift-share effect analysis indicates that ICN lost 422,180 tons in the north-east region during the same period, suggesting that transferred cargoes might have been forwarded to PVG.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.6 no.1
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• pp.125-145
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• 1998

The term "Privatization" has a different meaning in different contexts and cultures. In this paper, the term "Privatization" in the context of airports is defined as the movement of an entity from the government sector to the private sector. This is the definition that is commonly employed in the U.S. Airport revenue can he divided into two sub-categories of aeronautical revenue and non-aeronautical revenue. At many of the major international airports, however, non-aeronautical revenue has been growing faster than the aeronautical revenue, contributing an increasingly larger share of the total revenue. And the best way to enhance simultaneously the airport operations. With the remarkable growth in the air traffic volume of pssengers and cargo. more and more mega-international airports have been built or are under construction. As the air transport demand is expected to increase at an even greater rate in the 21st century, new types of airports which will be free of current major problems. such as airport congestion and flight delays are badly needed.

• Journal of Distribution Science
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• v.11 no.8
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• pp.5-14
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• 2013

Purpose - We live in a world of constant change and competition. Many airports have specific competitiveness goals and strategies for achieving and maintaining them. The global economic recession, financial crises, and rising oil prices have resulted in an increasingly important role for facility investment and renewal and the implementation of appropriate policies in ensuring the competitive advantage for airports. It is thus important to analyze the factors that enhance efficiency and productivity for an airport. This study aims to determine the efficiency levels of 20 major airports in East Asia, Europe, and North America. Further, this study also suggests suitable policies and strategies for their development. Research design, data, and methodology - This paper employs the DEA-CCR, DEA-BCC, and DEA-Malmquist production index analysis models to determine airport efficiency. The study uses data on the efficiency and productivity of the world's leading airports between 2006 and 2010. The input variables include the airport size, the number of runways, the size of passenger terminals, and the size of cargo terminals. The output variables include the annual number of passengers and the annual cargo volume. The study uses basic data from the 2010 World Airport Traffic Report (ACI). The world's top 20 airports (as rated by the ACI report) are investigated. The study uses the expanded DEA Model and the Super Efficiency Model to identify the most effective airports among the top 20. The Malmquist productivity index analysis is used to measure airport effectiveness. Results - This study analyzes longitudinal and cross-sectional data on the world's top 20 airports covering 2006 to 2010. A CCR analysis shows that the most efficient airports in 2010 were Gatwick Airport (LGW), Zurich Airport (ZRH), Vienna Airport (VIE), Leonardo da Vinci Fiumicino Airport (FCO), Los Angeles International Airport (LAX), Seattle-Tacoma Airport (SEA), San Francisco Airport (SFO), HongKong Airport (HKG), Beijing Capital International Airport (PEK), and Shanghai Pudong Airport (PVG). We find that changes in airport productivity are affected more by technical factors than by airport efficiency. Conclusions - Based on the study results, we offer four airport development proposals. First, a benchmark airport needs to be identified. Second, inefficiency must be reduced and high-cost factors need to be managed. Third, airport operations should be enhanced through technical innovation. Finally, scientific demand forecasting and facility preparation must become the focus of attention. This paper has some limitations. Because the Malmquist productivity index is based on the hypothesis of the, the identified production change could be over- or under-estimated. Further, as DEA estimates the relative efficiency. It also cannot generalize to include all airport conditions because the variables are limited. To measure airport productivity more accurately, other input variables and environmental variables such as financial and policy factors should be included.

• Journal of Korean Society of Transportation
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• v.31 no.2
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• pp.11-19
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• 2013

This study analyzed relative efficiencies of fourteen airports in Korea with radial and non-radial approaches such as DEA(Data Envelopment Analysis) and SBM(Slack Based Measure) from 2004 to 2011. To suggest an improvement scheme for these airports, we analyzed slack airports and compared then with respective reference airports. To measure efficiency, we used the length of runway, the number of employees, and the size of terminal as input factors, and the number of passengers, the amount of cargo, and the number of flights as output factors. The analysis results showed that efficiencies of most airports had been decreasing and that the gap between efficient airports and inefficient airports was widening. Additionally, most airports had much slacks in its terminal size. It meant that they had been operated with a size not proportionate to their demands and that it is a major cause of inefficiency.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.2
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• pp.103-112
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• 2016

As supply chains are globalized, multinational companies are trying to optimize distribution networks using a hub and spoke structure. In this hub and spoke network structure, multinational companies locate regional distribution centers at hub airports, which serve demands in their corresponding regions. Especially when customers put higher priority on the service lead-time, hinterlands of international hub airports become ideal candidate locations for the regional hub distribution centers. By utilizing excellent airport and logistics services from hub airports, regional distribution centers in the hub airports can match supply with demand efficiently. In addition, regional hub distribution centers may increase air cargo volume of each airport, which is helpful in the current extremely competitive airport industry. In this paper, we classified locational preferences into three primary categories including demand, service and risk and applied the analytic hierarchy process methodology to prioritize factors of locational preferences. Primary preference factors include secondary factors. Demand factor contains access to current and prospect markets. Service factor comprises airport and logistics perspectives. Service factor in terms of airport operations includes secondary factors such as airport service and connectivity. Service factor in terms of logistics operations contains infrastructure and logistics operations efficiency. Risk factor consists of country and business risks. We also evaluated competitiveness of Asian hub airports in terms of candidate location for regional hub distribution centers. The candidate hub airports include Singapore, Hong Kong, Shanghai, Narita and Incheon. Based on the analytic hierarchy process analysis, we derived strategic implications for hub airports to attract multinational companies' regional hub distribution centers.

• Journal of Korean Society for Quality Management
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• v.45 no.1
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• pp.65-92
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• 2017

Purpose: The performance of global major airports is evaluated and several research questions are examined relative to the measures characterizing airport performance. Methods: The two-stage internal structure of airport performance is considered by decomposing it into physical operations and revenue generation. In the physical operations stage, operating costs, number of runways, terminal area and number of employees are used as inputs, while passenger throughput, cargo throughput and aircraft movements are taken as outputs. Subsequently, in the revenue generation stage, the outputs from the preceding stage are taken as inputs, while revenue is used as output. Results: Based upon this two-stage modeling of airport performance, a multiplicative two-stage network data envelopment analysis model is employed to calculate the overall and stage efficiencies of 59 airports using the recent data in the 2014 Airport Benchmarking Report published by the Air Transport Research Society. Several internal and external factors are also considered such as airport size, airport geographical location, proportion of international passengers, ownership (listed or not) and management style, and statistical analysis is performed to examine their impacts on airport performance. Conclusion: It is shown that the airports exhibit statistically significant difference across regions, and also some statistically significant factors affecting airport performance are identified.

• The Journal of Aerospace Industry
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• s.49
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• pp.3-40
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• 1999

In this paper, the types of airport operation are categorized four groups in context of ownership and operational management; full government ownership and operation; government ownership with privatization of selected service; government ownership and private management; private ownership and operation. The term,"Privatization" has a different definition when it is used in different contexts and cultures. In this paper, the definition of"Privatization" in the context of airport, is that the movement of an entity from the government sector to the private sector. To keep pace with the remarkable growth in the air traffic volume of passengers and cargo, more and more mega-international airports have been built or are under construction. As the air transport demand is expected to increase at an even greater rate in the 21st century, the need for new conception airport is merging to solve the current problems such as airport congestions and flight delays which will be essential factors to decide whether the competitive airports or not. Presently, we researched the type of the operational management to strengthen the competitiveness for Korea's airports. Specifically, It is focused on the government ownership with privatization of selected services. It seems to be evaluated as government ownership and private management when it is actively utilized within Korea Airport Authority's law or Inchon International Airport's public corporation law. To make more competitive airport in 21st Century, however, it is desirable to seek for the method to gradually evaluate to private ownership and operation.

• Nuclear Engineering and Technology
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• v.55 no.1
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• pp.1-11
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• 2023

To protect people and the environment from environmental radiation, the Act on Protective Action Guidelines against Radiation in the Natural Environment was formulated in Korea in 2011. This law regulates matters related to radiation safety that can be encountered in life. In accordance with this law, radiation monitoring equipment is operated at major airports and ports across the country, ensuring radiation monitoring of imported cargo. Currently, six ministries conduct radiation monitoring of imported cargo: the Nuclear Safety and Security Commission; the Korea Customs Service; the Ministry of Food and Drug Safety; the Ministry of Environment; the Ministry of Agriculture, Food and Rural Affairs; and the Korea Forest Service. Each ministry designates the relevant cargo items for radiation monitoring. The objective of this study was to comprehensively review the Korean radiation monitoring system for imported cargo and identify the areas and scopes of improvement. This paper also proposes a new law and an integrated supervision plan, which involves establishing a dedicated department to enhance the efficiency and professionalism of the national radiation monitoring system for imported cargo. The review will contribute to the development of a more sophisticated national radiation monitoring system for imported cargo.