Economics at your fingertips  

An integrated MCDM model for improving airline operational and financial performance

Pedro Jose Gudiel Pineda, James J.H. Liou, Chao-Che Hsu and Yen-Ching Chuang

Journal of Air Transport Management, 2018, vol. 68, issue C, 103-117

Abstract: The development of better methods for the improvement of airline performance is crucial, but this type of problem is difficult to solve because of the large number of complex factors involved making this inherently a multiple criteria decision making (MCDM) problem. In current studies, the factors to be evaluated are considered based upon a literature review or expert opinions. This study proposes an integrated model that combines data mining and MCDM to extract the critical factors for the improvement of airline performance. We apply the dominance-based rough set approach to extract the essential factors. The decision-making trial and evaluation laboratory method with the concepts of the analytic network process (DANP) is then used to construct the complex evaluation system. Finally, the VIKOR (VlseKriterijumska Optimizacija I Kompromisno Resenje in Serbian, meaning multicriteria optimization and compromise solution) method is applied to select the suitable improvement alternative goals with the corresponding weights provided by the DANP method. The results show that the current model can be used as the basis for a benchmark industry improvement index which can be used to evaluate each airline individually with defined planning goals to achieve financial efficiency by improving operational efficiency.

Keywords: Airline performance; DRSA; DANP; VIKOR; MCDM (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

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 ().

Page updated 2019-03-30
Handle: RePEc:eee:jaitra:v:68:y:2018:i:c:p:103-117