AbstractData envelopment analysis is used to examine inter-temporal and peer group airline efficiency. Results for the US for 1985–2006 indicate that airline performance is converging over time. In particular, airlines inter-temporal inefficiency peaked earlier and then converged. Furthermore, using Tobit specifications it is seen that while demand intensity matters less in determining airlines inter-temporal inefficiency, their influence is stronger in determining peer group inefficiency. Block time, a representative of operational factors, tends to negatively impact airlines efficiency by imposing burdens on airline operations. Among the structural cost and revenue factors, fuel cost tends to affect inter-temporal inefficiency more robustly than it does to peer group efficiency. Labor pay tends to reduce inefficiency in case of inter-temporal while increasing peer group inefficiency. The events of September 11th had little or no impact on inter-temporal inefficiency but tended to reduce peer group inefficiency in a significant way. Finally, airlines efficiency tends to be robustly affected by block hours; reducing them increases efficiency.
Race to the bottom or swimming upstream: Performance analysis of US airlines
Journal of Air Transport Management ; 15 , 5 ; 227-235
2009-01-01
9 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
Race to the bottom or swimming upstream: Performance analysis of US airlines
Online Contents | 2009
|Airframers focusing on airlines' bottom lines
Online Contents | 2013
|In-flight e-mail race intensifies . Alaska Airlines to install LiveTV
Online Contents | 2000
British Library Conference Proceedings | 1997
|