Prioritizing airport development plan to optimize financial feasibility
Abstract
Air transportation plays a significant role not only in connecting remote and isolated areas but also in enhancing national economic development. Indonesia, a country consisting of more than 17,000 islands, has 162 airports administered by its government through the Directorate General of Civil Aviation (DGCA) of the Ministry of Transportation. In response to budget constraints to expand these airports for services, the government has initiated collaboration with the private sector to develop airports. This paper aims to assist decision makers in deciding which of the 162 airports should be prioritized for partnership based on project feasibility. The study used qualitative and quantitative approaches, employing an analytical hierarchy process (AHP) method, multi-criteria weighting, and financial feasibility to analyze the findings. As a result, the prioritized airports recommended for partnership with the private sector are expressed in a quadrant priority of scale.
Keyword : airport choice, financial feasibility, infrastructure, multi-criteria weighting, privatization
How to Cite
Berawi, M. A., Susantono, B., Miraj, P., & Nurmadinah, F. (2018). Prioritizing airport development plan to optimize financial feasibility. Aviation, 22(3), 115-128. https://doi.org/10.3846/aviation.2018.6589
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Morrissey, K. (2014). Producing regional production multipliers for Irish marine sector policy: a location quotient approach. Ocean & Coastal Management, 91, 58-64. https://doi.org/10.1016/j.ocecoaman.2014.02.006
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Park, J. W., Kim, K. W., Seo, H. J., & Shin, H. W. (2011). The privatization of Korea’s Incheon international airport. Journal of Air Transport Management, 17(4), 233-236. https://doi.org/10.1016/j.jairtraman.2010.09.002
Price, M. (2014). Airport Construction Project Risk Management. Retrieved from https://www.aci-na.org/sites/default/files/mindy_price_-_construction_risk.pdf
Saaty, T. L. (1980). The analytic hierarchy process. New York: McGraw-Hill.
Saaty, T. L. (2008). Decision making with the analytic hierarchy process. International Journal of Services Sciences, 1(1), 83-98. https://doi.org/10.1504/IJSSCI.2008.017590
Statistics Indonesia (2018). Statistical yearbook of Indonesia. BPS-Statistics Indonesia. Retrieved from https://www.bps.go.id/publication/2018/07/03/5a963c1ea9b0fed6497d0845/statistik-indonesia-2018.html
Thelle, M. H., & la Cour Sonne, M. (2018). Airport competition in Europe. Journal of Air Transport Management, 37, 232-248. https://doi.org/10.1016/j.jairtraman.2017.03.005
Thompson, I. B. (2002). Air transport liberalization and the development of third level airports in France. Journal of Transport Geography, 10(4), 273-285. https://doi.org/10.1016/S0966-6923(02)00043-1
Ucler, C. (2017). Brainstorming the cryoplane layout by using the iterative AHP-QFD-AHP approach. Aviation, 21(2), 55-63. https://doi.org/10.3846/16487788.2017.1344138
Vaidya, O. S., & Kumar, S. (2006). Analytic hierarchy process: an overview of applications. European Journal of Operational Research, 169(1), 1-29. https://doi.org/10.1016/j.ejor.2004.04.028
Wells, A. T. (1992). Airport planning & management. New York: TAB Books.
Western Sydney Airport. (2014). Risk matrix. Retrieved from https://westernsydneyairport.gov.au/files/Appendix_D_risk_matrix.pdf
Woodhead, R. M., & Berawi, M. A. (2008). An alternative theory of idea generation. International Journal of Management Practice, 3(1), 1-19. https://doi.org/10.1504/IJMP.2008.016044
Wong, J. K., & Li, H. (2008). Application of the analytic hierarchy process (AHP) in multi-criteria analysis of the selection of intelligent building systems. Building and Environment, 43(1), 108-125. https://doi.org/10.1016/j.buildenv.2006.11.019
World Bank. (2017). Air transport, passengers carried. Retrieved from https://data.worldbank.org/indicator/IS.AIR.PSGR
Yang, X., Tok, S. K., & Su, F. (2008). The privatization and commercialization of China᾽s airports. Journal of Air Transport Management, 14(5), 243-251. https://doi.org/10.1016/j.jairtraman.2008.04.012
Yoo, K. E., & Choi, Y. C. (2006). Analytic hierarchy process approach for identifying relative importance of factors to improve passenger security checks at airports. Journal of Air Transport Management, 12(3), 135-142. https://doi.org/10.1016/j.jairtraman.2005.11.006
Zietsman, D., & Vanderschuren, M. (2014). Analytic hierarchy process assessment for potential multi-airport systems–the case of cape town. Journal of Air Transport Management, 36, 41-49. https://doi.org/10.1016/j.jairtraman.2013.12.0
Adler, N., Fu, X., Oum, T. H., & Yu, C. (2014). Air transport liberalization and airport slot allocation: the case of the Northeast Asian transport market. Transportation Research Part A: Policy and Practice, 62, 3-19. https://doi.org/10.1016/j.tra.2014.02.003
Berawi, M. A. (2006). Distinguishing concept types in function models during the act of innovation (Unpublished doctoral dissertation). Oxford Brookes University.
Berawi, M. A., Berawi, A. R. B., Prajitno, I. S., Nahry, N., Miraj, P., Abdurachman, Y., Tobing, E., & Ivan, A. (2015). Developing conceptual design of high speed railways using value engineering method: creating optimum project benefits. International Journal of Technology, 6(4), 670-679. https://doi.org/10.14716/ijtech.v6i4.1743
Berawi, M. A., Miraj, P., Berawi, A. R. B., Silvia, & Darmawan, F. (2016). Towards self-sufficient demand in 2030: analysis of life-cycle cost for Indonesian energy infrastructure. International Journal of Technology, 7(8), 1444-1453. https://doi.org/10.14716/ijtech.v7i8.6882
Berawi, M. A., Zagloel, T. Y., Miraj, P., & Mulyanto, H. (2017). Producing alternative concept for the trans-sumatera toll road project development using location quotient method. Procedia Engineering, 171, 265-273. https://doi.org/10.1016/j.proeng.2017.01.334
Billings, S. B., & Johnson, E. B. (2012). The location quotient as an estimator of industrial concentration. Regional Science and Urban Economics, 42(4), 642-647. https://doi.org/10.1016/j.regsciurbeco.2012.03.003
Bråthen, S., & Halpern, N. (2012). Air transport service provision and management strategies to improve the economic benefits for remote regions. Research in Transportation Business & Management, 4, 3-12. https://doi.org/10.1016/j.rtbm.2012.06.003
Carnis, L., & Yuliawati, E. (2013). Nusantara: Between sky and earth could the PPP be the solution for Indonesian airport infrastructures? Case Studies on Transport Policy, 1(1), 18-26. https://doi.org/10.1016/j.cstp.2013.08.003
Cheung, S. O., Lam, T. I., Leung, M. Y., & Wan, Y. W. (2001). An analytical hierarchy process based procurement selection method. Construction Management & Economics, 19(4), 427-437. https://doi.org/10.1080/014461901300132401
Couper, A. (2015). The geography of sea transport (Vol. 5). London: Routledge. https://doi.org/10.4324/9781315665238
Crowe, T. J., Noble, J. S., & Machimada, J. S. (1998). Multi-attribute analysis of ISO 9000 registration using AHP. International Journal of Quality & Reliability Management, 15(2), 205-222. https://doi.org/10.1108/02656719810368495
Doganis, R. (2005). The airport business. London: Routledge. https://doi.org/10.4324/9780203977316
Fasone, V., Maggiore, P., & Scuderi, R. (2014). Airport ownership and financial performance: evidence from Italy. Journal of Air Transport Management, 40, 163-168. https://doi.org/10.1016/j.jairtraman.2014.07.004
Givoni, M., & Banister, D. (2007). Role of the railways in the future of air transport. Transportation Planning and Technology, 30(1), 95-112. http://doi.org/10.1080/03081060701208100
Gong, S. X., Cullinane, K., & Firth, M. (2012). The impact of airport and seaport privatization on efficiency and performance: a review of the international evidence and implications for developing countries. Transport Policy, 24, 37-47. https://doi.org/10.1016/j.tranpol.2012.06.020
Hong Kong Airport Annual Report. (2011). Risk Management Report. Retrieved from https://www.hongkongairport.com/iwov-resources/file/airport-authority/publications/annual-and-interim-reports/en/11_12/E_10_Risk_Management_Report.pdf
Hooper, P. (2002). Privatization of airports in Asia. Journal of Air Transport Management, 8(5), 289-300. https://doi.org/10.1016/S0969-6997(02)00009-1
Ismail, S. (2013). Critical success factors of public private partnership (PPP) implementation in Malaysia. Asia-Pacific Journal of Business Administration, 5(1), 6-19. https://doi.org/10.1108/17574321311304503
Karim, S. B. A., Rahman, H. A., Berawi, M. A., & Jaapar, A. (2007). A review on the issues and strategies of stakeholder management in the construction industry. In Meeting and Conference on Management in Construction and Researchers Association (MICRA). Shah Alam, Selangor, Malaysia, University of Malaya.
Leslie, T. F., Frankenfeld, C. L., & Makara, M. A. (2012). The spatial food environment of the DC metropolitan area: clustering, co-location, and categorical differentiation. Applied Geography, 35(1-2), 300-307. https://doi.org/10.1016/j.apgeog.2012.07.008
Miles, M. B., & Huberman, A. M. (1994). An expanded resource: qualitative data analysis (2nd ed.). Thousand Oaks, CA: Sage.
Medvedev, A., Alomar, I., & Augustyn, S. (2017). Innovation in airport design. Aviation, 21(1), 23-28. https://doi.org/10.3846/16487788.2017.1303542
Morrissey, K. (2014). Producing regional production multipliers for Irish marine sector policy: a location quotient approach. Ocean & Coastal Management, 91, 58-64. https://doi.org/10.1016/j.ocecoaman.2014.02.006
Nielsen, K. R., & Elum, C. (2007). Some practical thoughts–risk allocation regarding airport projects in China. In IPBA Conference: Risk Allocations on Airports Session. Beijing, China.
Osei-Kyei, R., & Chan, A. P. (2015). Review of studies on the critical success factors for Public–Private Partnership (PPP) projects from 1990 to 2013. International Journal of Project Management, 33(6), 1335-1346. https://doi.org/10.1016/j.ijproman.2015.02.008
Paixão, A. C., & Marlow, P. B. (2002). Strengths and weaknesses of short sea shipping. Marine Policy, 26(3), 167-178. https://doi.org/10.1016/S0308-597X(01)00047-1
Park, J. W., Kim, K. W., Seo, H. J., & Shin, H. W. (2011). The privatization of Korea’s Incheon international airport. Journal of Air Transport Management, 17(4), 233-236. https://doi.org/10.1016/j.jairtraman.2010.09.002
Price, M. (2014). Airport Construction Project Risk Management. Retrieved from https://www.aci-na.org/sites/default/files/mindy_price_-_construction_risk.pdf
Saaty, T. L. (1980). The analytic hierarchy process. New York: McGraw-Hill.
Saaty, T. L. (2008). Decision making with the analytic hierarchy process. International Journal of Services Sciences, 1(1), 83-98. https://doi.org/10.1504/IJSSCI.2008.017590
Statistics Indonesia (2018). Statistical yearbook of Indonesia. BPS-Statistics Indonesia. Retrieved from https://www.bps.go.id/publication/2018/07/03/5a963c1ea9b0fed6497d0845/statistik-indonesia-2018.html
Thelle, M. H., & la Cour Sonne, M. (2018). Airport competition in Europe. Journal of Air Transport Management, 37, 232-248. https://doi.org/10.1016/j.jairtraman.2017.03.005
Thompson, I. B. (2002). Air transport liberalization and the development of third level airports in France. Journal of Transport Geography, 10(4), 273-285. https://doi.org/10.1016/S0966-6923(02)00043-1
Ucler, C. (2017). Brainstorming the cryoplane layout by using the iterative AHP-QFD-AHP approach. Aviation, 21(2), 55-63. https://doi.org/10.3846/16487788.2017.1344138
Vaidya, O. S., & Kumar, S. (2006). Analytic hierarchy process: an overview of applications. European Journal of Operational Research, 169(1), 1-29. https://doi.org/10.1016/j.ejor.2004.04.028
Wells, A. T. (1992). Airport planning & management. New York: TAB Books.
Western Sydney Airport. (2014). Risk matrix. Retrieved from https://westernsydneyairport.gov.au/files/Appendix_D_risk_matrix.pdf
Woodhead, R. M., & Berawi, M. A. (2008). An alternative theory of idea generation. International Journal of Management Practice, 3(1), 1-19. https://doi.org/10.1504/IJMP.2008.016044
Wong, J. K., & Li, H. (2008). Application of the analytic hierarchy process (AHP) in multi-criteria analysis of the selection of intelligent building systems. Building and Environment, 43(1), 108-125. https://doi.org/10.1016/j.buildenv.2006.11.019
World Bank. (2017). Air transport, passengers carried. Retrieved from https://data.worldbank.org/indicator/IS.AIR.PSGR
Yang, X., Tok, S. K., & Su, F. (2008). The privatization and commercialization of China᾽s airports. Journal of Air Transport Management, 14(5), 243-251. https://doi.org/10.1016/j.jairtraman.2008.04.012
Yoo, K. E., & Choi, Y. C. (2006). Analytic hierarchy process approach for identifying relative importance of factors to improve passenger security checks at airports. Journal of Air Transport Management, 12(3), 135-142. https://doi.org/10.1016/j.jairtraman.2005.11.006
Zietsman, D., & Vanderschuren, M. (2014). Analytic hierarchy process assessment for potential multi-airport systems–the case of cape town. Journal of Air Transport Management, 36, 41-49. https://doi.org/10.1016/j.jairtraman.2013.12.0