A note on the effects of the number of low-cost airlines on small tourist airports' efficiencies

This note considers the implications of the presence of low-cost airlines, and particularly their number, on the economic efficiency of tourist oriented, regional airports. Using a combined programming and econometric framework we examine the economic efficiency of twelve airports in North-east Italy, Slovenia, and Croatia over eight years and how this is affected by their use by low cost carriers. The evidence is that the presence of a greater number of such carriers can increase the economic efficiency of regional airports, and, thus in the longer-term, potential positively stimulate the flow of tourists to the airports' hinterland. This influence varies over time as the number of LCC fluctuates and also across the airports studied.