Abstract The low profitability of regional airports is a major impediment to the development of regional aviation. Without subsidies, regional airports struggle to subsist financially. This paper elucidates the various revenue and expenditure heads of Indian airports and discusses the financial status of regional airports. This study also uses panel data from 42 Indian regional airports from 2014–2015 to 2018–2019 to examine the effect of possible determinants on regional airport profits and revenue. Applying Hausman-Taylor regression, the findings indicate that regional airports can expand their profits and revenue primarily by increasing domestic and international passenger flow. Lower levels of seasonality contribute to the airport revenue. Airport capacity utilisation has a favourable and considerable impact on airport profits but not airport revenue. Civil enclaves were found to be profitable. Additionally, the research findings emphasise the unpredictable nature of low-cost carriers and provide managerial implications to policymakers and regional airport operators.
Highlights This paper highlights the financial status of regional airports in India. Lower levels of seasonality contribute to airport revenue. Airport capacity utilisation has a favourable and considerable impact on airport profits. Civil enclaves are found to be profitable. The unpredictable nature of low-cost carriers is emphasised.
Econometric evidence on the profits and revenues of Indian regional airports
2023-12-19
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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