The Operational Impacts of Government Restructuring of the Airline Industry

In 2001, the 10 state-owned air carriers in China were consolidated into three groups, headed by Air China, China Eastern, and China Southern. As part of this consolidation mandate, the Civil Aviation Administration of China yielded its management control of air carriers and was required to divest itself of assets held in many of the state-owned airlines and its interests in more than 120 airports around China. This study investigates the operational impacts of this industry restructuring using data from the International Civil Aviation Organization for 2003 and 2004. The relative operational efficiency of Air China, China Eastern, and China Southern is compared to a sample of Asian, European and United States flag carriers. Data envelopment analysis is utilized to derive operational efficiency scores for individual airlines. The underlying structural drivers of efficiency are then investigated via a tobit analysis. Findings show that all three Chinese airlines are below the sample average in some important operational management areas.

Language

  • English

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Filing Info

  • Accession Number: 01033449
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 29 2006 10:37AM