Efficiency comparison of airline groups in Annex 1 and non-Annex 1 countries: A dynamic network DEA approach

Comparaison de l'efficacité des groupes de compagnies aériennes dans les pays de l'Annexe 1 et les pays non-Annexe 1: Une approche de la DEA par réseau dynamique

Eduardo Tola Losa, Amir Arjomandi, K. Hervé Dakpo () and Jason Bloomfield
Additional contact information
Eduardo Tola Losa: Oliver Wyman
Amir Arjomandi: School of Accounting, Economics and Finance [Wollongong] - Faculty of Business [Wollongong] - University of Wollongong [Australia]
K. Hervé Dakpo: ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
Jason Bloomfield: School of Accounting, Economics and Finance [Wollongong] - Faculty of Business [Wollongong] - University of Wollongong [Australia]

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Abstract: This study compares the performance of the world's largest airline groups from Annex 1 and non-Annex 1 countries during the period 2010 to 2016. A recently proposed slacks-based network DEA model is further extended to a dynamic framework in order to measure airline groups' overall efficiency directly at the system, which is superior to the weighted sum of divisional efficiencies that is commonly used in the literature. A new definition of capital is also introduced taking into account the income-generating capacity of employed aircraft. The findings show that, although the aviation industry's emissions were not subject to the Kyoto Protocol, airline groups with hubs based in Annex 1 countries have performed better in terms of managing their overall production processes as well as operations and services efficiencies. Hence, one may argue that the Kyoto Protocol has wielded a positive influence on airline groups' decision-making process in general, and their operations and services in particular. On the other hand, sales efficiency results are not completely in line with this hypothesis as they show several Annex 1 airline groups are found to be highly inefficient among their rivals.

Keywords: Airline group; International aviation emissions; Kyoto protocol; Dynamic network slack-based measures; Data envelopment Analysis; Aviation; Protocole de kyoto (search for similar items in EconPapers)
Date: 2020-12
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Citations: View citations in EconPapers (4)

Published in Transport Policy, 2020, 99, pp.163-174. ⟨10.1016/j.tranpol.2020.08.013⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03151906

DOI: 10.1016/j.tranpol.2020.08.013

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