The determinants of aeronautical charges of U.S. airports: A spatial analysis

Abstract

Using U.S. airport data from 2009 through 2016, this thesis examines the determinants of aeronautical charges of large and medium hub airports and accounts for the spatial dependence of neighboring airports in a spatial panel regression model. The major finding of this thesis are (1) U.S. airports' aeronautical charges are spatially dependent, and neighboring airport charges are spatially and positively correlated; (2) there is evidence of airport cost recovery through nonaeronautical revenues; (3) airports sharing non-aeronautical revenues with airlines charge lower aeronautical fees than their peers that do not share revenues; (4) aeronautical charges increase with higher delays. v DEDICATION To my lovely wife, Esin and our twins, Janset and Jem. viTABLE OF CONTENTS

The Connection Between an Airport Type and Revenue Structure at Baltic States Airports

“…Therefore, it might be possible that one of key factors affecting the ratio of aeronautical and non-aeronautical revenues is the size of an airport. According to Karanki et al (2020), revenue losses might result from inappropriate balance of aeronautical and non-aeronautical revenues in the context of specified airports. For example, high aeronautical charges might limit operations of airlines from the airport, thus, leading to the airport's losses in aeronautical revenues (Karanki et al, 2020).…”

“…According to Karanki et al (2020), revenue losses might result from inappropriate balance of aeronautical and non-aeronautical revenues in the context of specified airports. For example, high aeronautical charges might limit operations of airlines from the airport, thus, leading to the airport's losses in aeronautical revenues (Karanki et al, 2020). To be able to sustain aeronautical revenues at the level exceeding non-aviation revenues, it might be necessary to have a proper size.…”