Airport Economics in Latin America and the Caribbean : Benchmarking, Regulation, and Pricing

Abstract

This report presents the findings of a
 first-ever, comprehensive study of how Latin America and the
 Caribbean (LAC) region airports have evolved during a
 notable period of transition in airport ownership. It is an
 unbiased, positive analysis of what happened, rather than a
 normative analysis of what should be done to reform and to
 attract private sector participation to the airport sector.
 It takes the first step to respond to the need for more
 conclusive information about the influence of airport
 ownership on economic performance. The report centers on the
 study of three dimensions of performance: productive
 efficiency, institutional setup for the governance of the
 sector, and financing. This multifaceted report uses a range
 of advanced quantitative and qualitative methods to assess
 the relationship between airport ownership and performance
 in the LAC region. After a comprehensive overview, chapters
 1 and 2 provide the necessary background for the air
 transport sector and the evolution of private sector
 participation and investment in airport infrastructure. In
 chapter 3, questionnaires submitted to airport operators and
 regulators led to the creation of the unique data sets,
 which were first used to compare performance across 14
 partial performance indicators, and next used to develop
 aggregate measures of efficiency necessary for the
 benchmarking exercise. In chapter 4, a qualitative study of
 the relationship between type of regulating agency
 (independent or government-led) and transparency,
 accountability, and bureaucracy provides insight into how
 recent reforms have also affected the quality of regulatory
 governance. Chapter 5 provides an in-depth analysis of the
 evolution of tariff structures in the region as compared to
 a sample of international airports. Several important topics
 were not included in this report but should be the focus of
 future research. In particular, the evolution of the quality
 of services in airports deserves greater attention, as
 airports are increasingly becoming business centers and key
 gateways for trade competitiveness. The other main topic
 that requires detailed practical research is climate change
 and its relationship with the airport sector.