AbstractIn this paper, we empirically measure the impact of aircraft leasing choices on airlines financial performance. We use public data on 73 airlines operating worldwide over the period 1996–2011. In estimating the impact of leasing on profitability, we control for potential endogeneity by applying robust instrumental variables estimation, while introducing a set of individual and macroeconomic factors. Our results are threefold. First, we identify a non-monotonic and concave effect of leasing on an airline’s profit margin, suggesting decreasing marginal returns to leasing in this sector. This is an original finding for the industry. We also derive a confidence interval for the optimal level of leasing. Second, we show that the impact of leasing on an airline’s operating profit is stronger for Low Cost Carriers than for Full Cost Carriers: deviating from the optimal level of leasing might be more harmful for a LCC than for a legacy carrier. Finally, we analyze how an airline’s experience affects the relationship between leasing and profitability.


    Zugriff

    Zugriff prüfen

    Verfügbarkeit in meiner Bibliothek prüfen

    Bestellung bei Subito €


    Exportieren, teilen und zitieren



    Titel :

    Leasing and profitability: Empirical evidence from the airline industry


    Beteiligte:


    Erscheinungsdatum :

    2017-01-05


    Format / Umfang :

    17 pages




    Medientyp :

    Aufsatz (Zeitschrift)


    Format :

    Elektronische Ressource


    Sprache :

    Englisch




    Profitability change in the global airline industry

    Scotti, Davide / Volta, Nicola | Elsevier | 2017


    Profitability change in the global airline industry

    Scotti, Davide | Online Contents | 2017


    Outlook for Profitability in the Airline Industry (Summary)

    Shipka, B. D. / Travel and Tourism Research Association | British Library Conference Proceedings | 1993



    LEASING AS IMPORTANT TOOL OF AIRLINE FINANCING

    V. G. Afanasiev | DOAJ | 2016

    Freier Zugriff