Analysing the financial performance of US hub airports in relation to lease agreement types

This paper performs a cluster analysis to examine the financial implications of the different types of airline lease agreements used by U.S. hub airports. Four key financial performance indicators relating to financial profitability including revenue generation, capital investment, commercial performance and cost effectiveness are analysed using 2011/12 financial data for large-hub airports. The results show that while financial performance varies according to traffic mix, airports with the same agreement types are clustered together. The paper concludes by noting that airports’ control of their financial performance varies by agreement type and the identified clusters support the subcategorisation of airport performance indicators.