Race to the bottom or swimming upstream: Performance analysis of US airlines
Data 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.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/oclc/31005945
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Supplemental Notes:
- Abstract reprinted with permission from Elsevier
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Authors:
- Bhadra, Dipasis
- Publication Date: 2009-9
Language
- English
Media Info
- Media Type: Print
- Features: Figures; References; Tables;
- Pagination: pp 227-235
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Serial:
- Journal of Air Transport Management
- Volume: 15
- Issue Number: 5
- Publisher: Elsevier
- ISSN: 0969-6997
- Serial URL: http://www.sciencedirect.com/science/journal/09696997
Subject/Index Terms
- TRT Terms: Airlines; Costs; Operations; Revenues
- Uncontrolled Terms: Block time; Performance analysis
- Geographic Terms: United States
- Subject Areas: Aviation; Operations and Traffic Management; Planning and Forecasting;
Filing Info
- Accession Number: 01140871
- Record Type: Publication
- Files: TRIS
- Created Date: Sep 29 2009 9:03AM