AN EVALUATION OF NIGERIA AIRPORT PRODUCTIVITY AND  EFFICIENCY

ABSTRACT

This study assessed the productivity and efficiency of airports in Nigeria employing the method of Data Envelopment Analysis (DEA).Two variants of DEA models were estimated and their outputs compared in order to enhance the robustness of the study. These models include the one based on Constant Returns to Scale (CRS) to characterise the input-output combinations and that based on Variable Returns to Scale (VRS). It is sometimes argued that DEA models generally tend to overestimate efficiencies of decision making units. Bootstrapping of the DEA results was therefore carried out to adjust the efficiency scores thereby improving considerably the robustness of the estimates and their status in terms of reliability. Another feature of the regular DEA model is that it is non-parametric. To reflect some parametric arguments a censured regression model was estimated to capture the impact of variables, such as hub status, type, size and nearness to seaports, which, in the context of airport operations, affect productivity and efficiency but are not evident in DEA. The data used in the DEA estimations were time series data covering the period 2003-2013 on the inputs and outputs of 30 airports in the industry. These data were sourced from the records of airport terminal operations kept by FAAN and NCAA. Primary data were used for the censored regression estimate. These were obtained from responses to structured questionnaires distributed to samples of airport users and airport operators. On the wholeCRS estimates show that 3 of the airports were efficient  with the efficiency score of 100%, whereas the result of the VRS shows that 8 of the airports were operating efficiently with the efficiency score of 100%. The results also show that 7 Nigerian airports were operating under increasing returns to scale whilst 2 of the airports were operating under decreasing returns to scale. The least efficient of the airports scored 1.23% and 1.35% respectively in the CRS and VRS estimates. A decomposition of the average productive efficiency scores into Technical Efficiency (TE), Pure Technical Efficiency (PTE), and Scale Efficiency (SE) revealed the following values- 0.4223 (42%), 0.5989 (60%), and 0.7469 (75%) respectively, suggesting that Scale Efficiency was the main driver of productivity growth in the Nigerian airports during the study  period. The result of the censured regression estimates showed that the recorded growth in productivity could be attributed to hub ports and privately owned ports. The study therefore concludes that significant insights have been gained in unraveling the status of productive efficiency in the airport industry, using a robust DEA model. The results are useful in terms of policy and provide the benchmarks which the government could use in the privatisation program currently canvassed in the airport industry.

AN EXAMINATION INTO SERVICE QUALITY MEASUREMENT OF NIGERIAN AIRLINES

ABSTRACT

This study investigates airlines level of service to domestic passengers in Nigeria using process stages with a number of service quality attributes each. These attributes represent points where the passenger experience varying kind of services. Data were collected from passengers waiting for their flights using a well-structured questionnaire on a five-point likert scale regarding passenger’s expectations and perception of service offer. The data was encoded into Microsoft excel and subsequently analyzed with the aid of statistical analysis software (SAS) using percentage, mean and standard deviation. The analysis was done by computing the mean and standard deviation of both expectations and perception of the twenty service quality attributes. Subsequently, subtracting the expectation mean from the perception mean resulted in the perceived service quality which is the gap. The results indicate a negative perceived service quality (gap) in all the twenty service quality attributes and seven process items tested. Airline departure of flights at scheduled times and accuracy and promptness of baggage delivery obtained the highest expectation mean (m=4.55 and m=4.49), the least perception mean (m=2.37 and m=2.9) and the resultant widest negative gaps (m=-2.18 and m=-1.59). However, a general average perceived service quality mean of -1.00 was arrived at in the study. Since expectations exceeded perceptions in the twenty service quality attributes, the results suggest a high level of unacceptability and a conclusion that passengers are dissatisfied with airlines level of service. ANOVA tests show that service quality attributes have significant effect on passengers’ perceived service quality and that passengers show significant difference among age group in terms of passengers’ perception of service offer. Finally, it was obvious from the prioritization of service quality dimensions that assurance (safety records) is highly important to domestic airline passengers in Nigeria and influences their choice of airline rather than service quality. Consequently, recommendations were made to improve service delivery of airlines.

Determinants of Customers’ Satisfaction in the Nigerian Aviation Industry Using Analytic Hierarchy Process (AHP) Model

Abstract: The aviation industry in Africa’s most populous nation has been experiencing an explosive growth in recent years with older domestic operators fighting competing new players. The expansion has given Nigerians a wider choice of airlines, many of them flying with new or recently refurbished aircraft, which have helped reverse the country’s situation for air safety in the wake of a spate of crashes six years ago. This paper applied the Analytic Hierarchy Process to identify the determinants of customers’ satisfaction in the Nigerian aviation industry. To achieve this aim, a sample of 100 customers were drawn from among customers (air passengers) at the Muritala Mohammed Airport 2 in Lagos, Nigeria, using convenience sampling and snowballing techniques. The quantitative approach was used to analysed the data obtained by using descriptive statistics and the Expert Choice 2000 a software designed to analyse AHP data. Findings show that customers of the aviation industry players derived their satisfaction when operators respond quickly to their requests and provides information in relation to their flights. Although there is little relative preference in terms of customers’ satisfaction regarding the services provided by the aviation operators in Nigeria, customers’ satisfaction is derived essentially from how the operators handle their ticketing and reservation services.