A Total Factor Productivity Based Structure for Tactical Cluster Assessment: Empirical Investigation in the Airline Industry

This paper uses the total factor productivity (TFP) to analyze and assess the efficiency and productivity of the U.S. airline industry for the years 1996 through 2001. While airlines use various resources to produce a heterogeneous group of outputs, this article focuses on certain fundamental outputs as final products of selected airlines. The years 1996 through 2001 have been chosen as a good example of years in which the industry experienced normal growth and generally positive returns. Although it is not surprising that differences in performance exist between individual enterprises, it is interesting that significant, sustained differences in productivity do exist between important segments within this industry. The results from this analysis indicate that the national airlines (domestic carriers) have higher TFP compared to the major airlines. While major airlines have drastically cut costs in the past few years, they also need to improve efficiency or risk going out of business.

Language

  • English

Media Info

  • Media Type: Print
  • Features: Figures; References; Tables;
  • Pagination: pp 3-19
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 01000923
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 15 2005 2:36AM