european journal of social sciences issn: 1450-2267 - EuroJournals

European Journal of Social Sciences – Volume 5, Number 3 (2007)
solving “who are the best operator about ERM implementation in the airport business?” problem. Best
practice criterias are determined that affect the best practice of ERM by doing literature searches and
analysis of ERM framework guidelines, case study and ERM survey reports. TAV Airport Holding Co.
and Fraport A.G. are determined as alternatives in the ANP model. These alternatives are assessed
according to the strategic, operational and financial criterias. In the result of this model application, one
of them is selected as best alternative regarding to the ERM implementation. But many efforts will
require being best in the ERM concept. So, many suggestions are developed in the conclusion part of
this study.
Analytic Network Process (ANP) methodology is used in this study. ANP provides a more
generalized model in decision-making without making assumptions about the independency of the
higher-level elements from lower-level elements and also of the elements within a level. Despite all
these merits, the applications of ANP are not very common in a decision-making problem. However, in
recent years, there has been an increase in the use of ANP in multi-criteria decision-making problems.
In the selection of a provider, the criteria are of both the types, subjective and objective. These criteria
also have some interdependencies, which cannot be captured by the popular AHP method. Therefore,
instead of using the commonly used AHP approach for solving such types of problems, I recommend
the use of an ANP-based model for the selection of a best operator.
The objective of this paper is to introduce a comprehensive decision methodology for the
selection of a best operator that airport managers can consider to their implementations about ERM.
The proposed methodology allows for assessment and benchmarking of alternative operators. Also,
this paper is give information about best practice of ERM. Following questions are responsed in this
study:
• What is ERM and best ERM practice?
• What is the best practice criterias?
• What should do to the best practice about ERM in the airport business?
In this study ANP serves as the decision analysis tool and we implemented it using Super
Decisions, sophisticated and user-friendly software that implements ANP (Saaty, 2001a). ANP makes
it possible to deal systematically with the interactions and dependencies among the factors in a
decision system (Bayazit and Carpak, 2007). The criteras were based on the results of literature search
and analysis of guidelines published by various organizations about ERM framework given fourth part
of this study as literature review. Also In this section, I mention the ANP methodology and explained
to considered criteria’s effecting to best practice of ERM. The criterias of ERM best practice to airport
business listed that dividing into three main groups such as strategic, operational and financial. The
reason of this division is shaping according to the ANP approach. ANP approach is explained appendix
section in this study.
The rest of this paper is organized as follows. Section 2 explains the importance of ERM to air
transportation industry and expecially airport business. Section 3 explains the concept of the ERM and
ERM best practice. In Section 4, literature related to the ERM and best practice survey is reviewed. In
section 5, current ERM implementations are reviewed in the airport business: TAV Airport Holding
Co. and Fraport A.G. Also in this section, Best ERM practice criterias are presented. In Section 6, the
proposed method based on the ANP is developed. Finally, according to the findings of this research,
conclusions and suggestions are presented. Some conclusion remarks are made in the last section,
while the appendix briefly reviews the decision making tool ANP.
2. Importance of ERM to Airport Business
Air transportation industry one of the world’s most important industries. Air transportation plays a vital
role in developing and facilitating economic growth, particularly in developing countries like Turkey.
Airports, as a key factor of production of air transport, are directly impacted by what happens to the
industry. Development and changes in the air transportation such as deregulation, liberalization,
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