Measuring the Technical Efficiency of Oceania Continent Airports: Does Workload Unit Matters?

Recently, there has been a rise in interest on measuring the efficiency and performances of international airports around the world by researchers. As there are more airlines in the industry competing with one another, airports as well started to compete with each other in order to become hub airports which provoke them to increase their efficiency. The principal objective of this research is to investigate and measure the efficiency of airports from the view of panel data analysis. We have applies a two-stage analysis methodology to determine the factors that could possibly sway the technical efficiency level by using ten different airports from year 2007 to 2016 in the Oceania continent countries. Model 2 shows that GDP per capita and Airport Hub significantly interact with Workload Unit (HUBXWLU) and towards the technical efficiency. In a nutshell, airport efficiency is important to many aspects of the society especially businesses that depends on better connectivity, airport operators that depends on passenger volume and governments that depends on economic development all of which are tools to building a more prosperous nation.