SavedAdd your journal

Journals / Journal of Aviation / 2026 / Volume: 10 Issue: 1

Determinants of Unit Costs at Airports in Türkiye: Economies of Scale and Revenue Effects

Filiz Ekici(IĞDIR ÜNİVERSİTESİ, IĞDIR MESLEK YÜKSEKOKULU)0000-0002-4904-3381
İlkay Orhan(ESKISEHIR TECHNICAL UNIVERSİTY)0000-0001-5303-2143
Pages
—
Publication Date
2026-02-27
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Additionally, it was found that revenue increases at airports also increased unit costs.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study examines the unit cost structure and the existence of economies of scale at 40 airports operating in Türkiye.
📊
Key Findings & Data:The study utilizes a panel data analysis approach, employing a comprehensive dataset comprising passenger numbers, aircraft traffic, and airport revenues from 2014 to 2023.
💡
Conclusion & Impact:Additionally, it was found that revenue increases at airports also increased unit costs.
🔬Design:Modeling & Simulation
📍Scope:2014 Verileri
⚙️Variables:Airport unit costs · Turkish airports · Economies of scale

Abstract

This study examines the unit cost structure and the existence of economies of scale at 40 airports operating in Türkiye. The study utilizes a panel data analysis approach, employing a comprehensive dataset comprising passenger numbers, aircraft traffic, and airport revenues from 2014 to 2023. Following model selection via the Hausman test, it was determined that the random effects model yielded statistically significant results. The analysis confirmed the existence of economies of scale at airports, while concluding that the impact of aircraft movements on unit costs is limited. Additionally, it was found that revenue increases at airports also increased unit costs. The findings confirmed that airport cost structures are sensitive to passenger volume. This study, which reveals airport costs and the state of economies of scale in Türkiye, provides important information for policymakers and airport management.

🔖

Cite This Article

Ekici, F., Orhan, İ. (2026). Determinants of Unit Costs at Airports in Türkiye: Economies of Scale and Revenue Effects. Journal of Aviation, Volume: 10 Issue: 1. https://doi.org/10.30518/jav.1769326

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (29)

  1. Baltagi, B. H. (2021). Econometric Analysis of Panel Data. Springer International Publishing.
  2. Barros, C. P., & Peypoch, N. (2009). An evaluation of European airlines’ operational performance. International Journal of Production Economics, 122(2), 525–533.
  3. Bassem, B. (2025). The effect of road and air transport infrastructure on FDI Inflows in MENA countries: A panel data analysis. Transport Economics and Management, 3, 172–182.
  4. Bauer, P. W. (1990). Decomposing TFP growth in the presence of cost inefficiency, nonconstant returns to scale, and technological progress. Journal of Productivity Analysis, 1(4), 287–299.
  5. Beck, N., & Katz, J. N. (2011). Modeling Dynamics in Time-Series–Cross-Section Political Economy Data. Annual Review of Political Science, 14(1), 331–352.
  6. Bilotkach, V. (2015). Are airports engines of economic development? A dynamic panel data approach. Urban Studies, 52(9), 1577–1593.
  7. Bilotkach, V., & Lakew, P. A. (2014). On sources of market power in the airline industry: Panel data evidence from the US airports. Transportation Research Part a: Policy and Practice, 59, 288–305.
  8. Caves, D. W., Christensen, L. R., & Tretheway, M. W. (1984). Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ. The RAND Journal of Economics, 15(4), 471.
  9. Chen, Y., Fuellhart, K., Grubesic, T. H., Zhang, S., & Witlox, F. (2024). An analysis of the context factors influencing the diverse response of airports to COVID-19 using panel and group regression. Transportation Research Part a: Policy and Practice, 179, 103925.
  10. Cheung, T. K.‑Y., Wong, W., Zhang, A., & Wu, Y. (2020). Spatial panel model for examining airport relationships within multi-airport regions. Transportation Research Part a: Policy and Practice, 133, 148–163.
  11. Cooper, R., & Kaplan, R. S. (1988). Measure Costs Right: Make the Right Decisions. Harvard Business Review, 66, 96–103.
  12. DHMİ (2025): Faaliyet Raporları. Devlet Hava Meydanları İşletmesi Genel Müdürlüğü. Available online at https://dhmi.gov.tr/Sayfalar/FaaliyetRaporlari.aspx.
  13. Gu, Y., Wiedemann, M., Freestone, R., Rothe, H., & Stevens, N. (2024). The impacts of shock events on airport management and operations: A systematic literature review. Transportation Research Interdisciplinary Perspectives, 27, 101182.
  14. Hausman, J. A. (1978). Specification Tests in Econometrics. Econometrica, 46(6), 1251.
  15. Kaya, G., & Aydın, U. (2024). The nexus between air transport and economic growth geographically: An evidence based on heterogeneous panel data models. Journal of Air Transport Management, 115, 102528.
  16. Merkert, R., & Morrell, P. S. (2012). Mergers and acquisitions in aviation – Management and economic perspectives on the size of airlines. Transportation Research Part E: Logistics and Transportation Review, 48(4), 853–862.
  17. Ngo, Thanh; Tsui, Kan Wai Hong (2020): A data-driven approach for estimating airport efficiency under endogeneity: An application to New Zealand airports. In Research in Transportation Business & Management 34, p. 100412.
  18. Oum, T. H., Yu, C., & Fu, X. (2003). A comparative analysis of productivity performance of the world's major airports: summary report of the ATRS global airport benchmarking research report—2002. Journal of Air Transport Management, 9(5), 285–297.
  19. Oum, T. H., & Zhang, Y. (1997). A Note on Scale Economies in Transport. Journal of Transport Economics and Policy, 31(3), 309–315.
  20. Örkcü, H. H., Balıkçı, C., Dogan, M. I., & Genç, A. (2016). An evaluation of the operational efficiency of turkish airports using data envelopment analysis and the Malmquist productivity index: 2009–2014 case. Transport Policy, 48, 92–104.
  21. Pérez-Granja, U., Pérez-Sánchez, J. M., & Pérez-Rodríguez, J. V. (2024). Assessing economic performance and aviation accidents using zero-inflated and over-dispersed panel data models. Journal of Air Transport Management, 118, 102599.
  22. Piratla, S., & Singh, B. K. (2023). Airport passenger movement, revenue and expenditure at non-major airports using panel data regression. Social Sciences & Humanities Open, 8(1), 100658.
  23. Rey, B., Myro, R. L., & Galera, A. (2011). Effect of low-cost airlines on tourism in Spain. A dynamic panel data model. Journal of Air Transport Management, 17(3), 163–167.
  24. Thomas, N., & Jha, K. N. (2024). Econometric evidence on the profits and revenues of Indian regional airports. Journal of Air Transport Management, 115, 102533.
  25. Voltes-Dorta, A., & Pagliari, R. (2012). The impact of recession on airports' cost efficiency. Transport Policy, 24, 211–222.
  26. Wattanacharoensil, W., Schuckert, M., & Graham, A. (2016). An Airport Experience Framework from a Tourism Perspective. Transport Reviews, 36(3), 318–340.
  27. Wei, M., Xiong, Y., & Sun, B. (2025). Spatial effects of urban economic activities on airports’ passenger throughputs: A case study of thirteen cities and nine airports in the Beijing-Tianjin-Hebei region, China. Journal of Air Transport Management, 125, 102765.
  28. Wu, Z., Lai, P.‑L., Piboonrungroj, P., & Guo, H. (2025). Determinants of air cargo volumes within airport networks: Insights from an augmented gravity model with economic distance and geographic threshold effects. The Asian Journal of Shipping and Logistics. Advance online publication.
  29. Yilmaz, Mustafa K.; Kusakci, Ali Osman; Aksoy, Mine; Hacioglu, Umit (2022): The evaluation of operational efficiencies of Turkish airports: An integrated spherical fuzzy AHP/DEA approach. In Applied Soft Computing 119, p. 108620.