ABSTRACT
Two important dimensions of airport performance—cost efficiency and service quality—are analysed in Chapter 7. The early tools of performance measurement, which were mainly forms of KPIs, are outlined first before describing the more sophisticated statistical methods available today. Challenges remain; the great diversity of airports, in terms of the services they offer, makes assessment and benchmarking difficult. The chapter reports evidence from recent studies that seek to separate managerial performance at airports from exogenous influences such as ownership, regulation and the strength of competition. In the second part of the chapter, airport service quality is discussed. As airports have become more commercialised and passengers more diversified, airport quality has gained increased importance. Quality measurement has shifted towards using surveys of airport users, and quality standards are now often incorporated into regulatory price caps.
