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Airline dynamic efficiency measures with a Dynamic RAM with unified natural & managerial disposability

Qiang Cui and Ye Li

Energy Economics, 2018, vol. 75, issue C, 534-546

Abstract: In this paper, we propose a Dynamic Range Adjusted Measure with unified natural & managerial disposability to evaluate the dynamic efficiency of 29 airlines during 2009–2015. In a dynamic period, the new model can judge automatically whether the airline should be under natural disposability or managerial disposability in the premise of optimizing the overall efficiency. We get some findings: 1. Scandinavian has the highest overall efficiency among these 29 airlines while Norwegian's overall efficiency is the least. 2. Improving undesirable outputs is not the most urgent work of these airlines. 3. In order to optimize the overall efficiency, most airlines should be under managerial disposability. 4. Most airlines' efficiencies have no obvious fluctuation in this period.

Keywords: Dynamic Range Adjusted Measure; Natural disposability; Managerial disposability; Airline efficiency (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1016/j.eneco.2018.09.016

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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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