An Appraisal of Airport Terminal Performance: Evidence from Murtala Muhammed International Airport (MMIA)

Abstract

          This study evaluates airport terminal operational performance and examines the effect of remodelling exercise at the Murtala Muhammed International Airport (MMIA). Using multiple regression analysis on panel data (2006 – 2014). The project was commissioned to upgrade MMIA infrastructure to a world-class standard, for a better service user experience. The results show that total cost, total assets, wages, and number of employees are major determinants of estimating aircraft passenger and cargo movement. The variables accounted for the R square is 99.8% for the aircraft movement, while the passenger movement is 93.3% and for the cargo movement is 99.5%, these are the relative total productivity of the MMIA terminal post investment.Terminal improvement assisted MMIA in coping with the increase number of passenger’s traffic and aircraft movement, better than the pre-project era, in terms of improving operational performance. Therefore, it is recommended that MMIA increases the current input, by investing more in the terminal capacity to attract and accommodate larger aircraft. Moreover, increase in the airport productivity will generate more revenue that can be used to improve the quality of service for a better service user experience. To sustain the terminal infrastructure on long-term; the aviation policy makers and the implementers, should consider private-sector financing strategy as a way forward, instead of the current asymmetrical funding system.