This book evaluates the efficiency and growth of the Ethiopian air transport sector through careful analysis. It provides essential research input for air transport industry practitioners in planning and resource management as well as for academics of advanced efficiency analysis who need to work and study in airports and the airline industry.
The book analyzes the theoretical and practical implications of air transport growth determinants, airports' cost and production efficiency, including labor use efficiency by taking their respective determinant factors. The findings and policy implications of each research work provide important inputs for government policymakers and air transport planners to consider the causality of economic growth versus airlines growth and other determinants, to take lessons on the proper resource allocation in the application of airport cost and production efficiency, human capital, investment cost, price of capital, and labor inputs during the development and expansion of airports and airlines.
This book is the first of its kind on the Ethiopian air transport industry and serves as a much-needed reference for the African air transport industry as well as other developing countries in terms of airport costs, production, labor use efficiency and airline growth perspectives.
1.3.2 An Empirical analysis of Air transport growth
1.3.3 Data sources
Contributions of this research
Policy recommendations
Limitations and guidelines for future research
2. Performance Overview of Ethiopian Airlines and Airports
Status of Ethiopian Airports
Traffic Trends
Growth Trends in Aircraft Types and Numbers
Brief Financial Status of Ethiopian
Trends in Worldwide Networks
Ethiopian’s flights to China
Ethiopian’s flights to African countries
3. Summary of each paper
References
Annexure A
Chapter Two
An Analysis of the Cost Efficiency of Ethiopian Airports
1. Introduction
2. Literature Review
2.1 Theoretical literature
2.2 A generalization of the SFA models
2.3 Empirical applications of the models to the airport industry
3. Dataset and Model Specifications
3.1 Data and description of variables
3.2 Input prices of airport services
3.3 Airport services
3.4 Passengers and Freight Cargo
3.5 Airport facilities and services
4. Model Specification and Efficiency Measurement Approaches
5. Analysis and Discussion of the Estimation Results
5.1 Output and inputs price elasticities
5.2 Efficiency of Airports
6. Summary and Conclusions
References
Chapter Three
An Analysis of the Production Efficiency of Ethiopian Airports
Abstract
1. Introduction
2. The Aviation Industry in Ethiopia
3. Literature review
3.1 Stochastic frontier functions
3.1.1 General production frontier model
3.1.2 Functional form of the scholastic production frontier
3.1.3 Stochastic production frontier model with panel data
3.2 Applications to the aviation industry
4. Data and Model Specifications
4.1 Dataset and a description of the variables
4.2 Model specification framework
5. Estimation and Discussion of the Results
6. Summary, Conclusion, and Recommendations
References
Chapter Four
Labor Use Efficiency of Ethiopian Airports
Abstract
1. Introduction
2. Literature review
3. Data and a description of the variables
3.1 Output data’s definitions
3.2 Input data’s definitions
4. The empirical input requirement frontier model
5. Panel data labor use model’s specification and estimation
6. A Discussion of the results
6.1 Fixed-effects model’s estimation
6.2 Model separating Labor use persistent and transitory inefficiency
components
6.3 An Analysis of the results of the MLE estimation model (Model 3)
6.4 Robustness test for the stochastic frontier efficiency models
7. Summary, Conclusion, and Recommendations
References
Chapter Five
Growth Determinants of Ethiopian Air Transport
Abstract
1. Introduction
Tsegay Kaleab is a Ph.D. graduate in economics of a collaborative program between Addis Ababa University and Jonkoping International Business School. He has ample work experience of over thirty years in different government organs including multiple managerial positions. Particularly, he has rich experience and practical knowledge of basic requirements for airport establishment, and maintenance, the logistics of airlines services, air transport passenger demand and infrastructures as well as customer handling standard, safety and security standards, and ICAO protocols.
This book evaluates the efficiency and growth of the Ethiopian air transport sector through careful analysis. It provides essential research input for air transport industry practitioners in planning and resource management as well as for academics of advanced efficiency analysis who need to work and study in airports and the airline industry.
The book analyzes the theoretical and practical implications of air transport growth determinants, airports' cost and production efficiency, including labor use efficiency by taking their respective determinant factors. The findings and policy implications of each research work provide important inputs for government policymakers and air transport planners to consider the causality of economic growth versus airlines growth and other determinants, to take lessons on the proper resource allocation in the application of airport cost and production efficiency, human capital, investment cost, price of capital, and labor inputs during the development and expansion of airports and airlines.
This book is the first of its kind on the Ethiopian air transport industry and serves as a much-needed reference for the African air transport industry as well as other developing countries in terms of airport costs, production, labor use efficiency and airline growth perspectives.