Managing airline productivity using data envelopment analysis

Dauw-Song Zhu, Chih-Te Lin, Chieh-Ju Yang and Kuo-Chung Chang

International Journal of Business Performance Management, 2012, vol. 13, issue 3/4, 294-311

Abstract: This study evaluated the operation performance of domestic airlines based on data envelopment analysis in terms of cost-efficiency, service-effectiveness and cost-effectiveness for each company. The result shows the following: firstly, the rank of performance is from the top UNI followed by FAT, MDN, and TNA in last. Secondly, the four domestic airlines performed well from a service-effectiveness perspective. The rank of performance on service-effectiveness is from the top TNA followed by FAT, MDN, and UNI in last. Thirdly, the four domestic airlines performed well in terms of cost-effectiveness. The rank of performance on cost-effectiveness is from the highest TNA followed by FAT, UNI, and MDN in last. None of the airlines performed well from the perspective of cost-efficiency, service-effectiveness and cost-effectiveness. Lastly, the TNA airline was shown to be the most efficient and effective company.

Keywords: performance evaluation; grey relational analysis; Malmquist DEA; data envelopment analysis; airline productivity; operation performance; domestic airlines; cost-efficiency; service-effectiveness; cost-effectiveness; UNI Air; Far Eastern Air Transport; FAT Taiwan; TransAsia Airways; TNA; Mandarin Airlines; business performance; performance management; efficiency management; service sector organisations. (search for similar items in EconPapers)
Date: 2012
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