Value determinants in the aviation industry

This paper analyzes the value determinants for both airports and airlines. The analysis is based on a sample of 24 airport operators and 87 airlines listed on international financial markets on 31 December 2007. We analyse the value drivers for both airlines and airports by studying the determinants of the Tobin's Q. On average airport operators have a market valuation higher than carriers. On the whole sample we show that ownership concentration has a positive impact, while size and state ownership are, on average, detrimental for the market valutation. Further, other industry specific variables are statistically significant. Airport valuation is positively influenced by size, return on assets and the growth in terms of number of passengers. Airlines valuation is statistically higher for low-cost companies, while age and route number have a negative impact on market valuation.