Network DEA approach to airports performance assessment considering undesirable outputs

In this paper, a directional distance approach is proposed to deal with network DEA problems in which the processes may generate not only desirable final outputs but also undesirable outputs. The proposed approach is applied to the problem of modelling and benchmarking airport operations. The corresponding network DEA model considers two process (Aircraft Movement and Aircraft Loading) with two final outputs (Annual Passenger Movement and Annual Cargo handled), one intermediate product (Aircraft Traffic Movements) and two undesirable outputs (Number of Delayed Flights and Accumulated Flight Delays). The proposed approach has been applied to Spanish airports data for year 2008 comparing the computed directional distance efficiency scores with those obtained using a conventional, single-process directional distance function approach. From this comparison, it can be concluded that the proposed network DEA approach has more discriminatory power than its single-process counterpart, uncovering more inefficiencies and providing more valid results. (C) 2012 Elsevier Inc. All rights reserved.