Race to the bottom or swimming upstream: Performance analysis of US airlines
Dipasis Bhadra ()
Journal of Air Transport Management, 2009, vol. 15, issue 5, 227-235
Data envelopment analysis is used to examine inter-temporal and peer group airline efficiency. Results for the US for 1985â€“2006 indicate that airline performance is converging over time. In particular, airlines inter-temporal inefficiency peaked earlier and then converged. Furthermore, using Tobit specifications it is seen that while demand intensity matters less in determining airlines inter-temporal inefficiency, their influence is stronger in determining peer group inefficiency. Block time, a representative of operational factors, tends to negatively impact airlines efficiency by imposing burdens on airline operations. Among the structural cost and revenue factors, fuel cost tends to affect inter-temporal inefficiency more robustly than it does to peer group efficiency. Labor pay tends to reduce inefficiency in case of inter-temporal while increasing peer group inefficiency. The events of September 11th had little or no impact on inter-temporal inefficiency but tended to reduce peer group inefficiency in a significant way. Finally, airlines efficiency tends to be robustly affected by block hours; reducing them increases efficiency.
Keywords: Economic efficiency; Low-cost airlines; Data envelopment analysis; US airlines (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:15:y:2009:i:5:p:227-235
Access Statistics for this article
Journal of Air Transport Management is currently edited by Anne Graham
More articles in Journal of Air Transport Management from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().