AIRLINE PRODUCTIVITY REDEFINED: AN ANALYSIS OF U.S. AND EUROPEAN CARRIERS

Productivity, in terms of net value added per man-year of labor and capital input, provides a more useful yardstick of airline efficiency than the widely used indices representing average unit costs or labor productivity. Large variations in productivity between airlines, in particular between U.S. and European airlines, can be explained almost entirely by differences in level of service, demand patterns and route characteristics. A regression model calibrated on 1975 data for fourteen U.S. and fourteen European scheduled airlines indicates that productivity could be increased by changes in network shape though a more liberal exchange of traffic rights, greater specialization (in particular the limited involvement of scheduled airlines in the very low yield charter market) and consumer choice--by offering higher frequency, multi-city services. /Author/

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  • Corporate Authors:

    Elsevier Science

    Radarweg 29, P.O. Box 211
    1043NX AE Amsterdam,   Netherlands 
  • Authors:
    • Morrell, P S
    • Taneja, N
  • Publication Date: 1979-3

Media Info

  • Features: References;
  • Pagination: p. 37-49
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00197142
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 17 1979 12:00AM