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Benchmarking US All-Cargo Carriers: A Productivity and Cost Competitiveness Analysis

Matteo Balliauw, Hilde Meersman, Evy Onghena and Eddy Van de Voorde

A chapter in Airline Efficiency, 2016, vol. 5, pp 55-72 from Emerald Publishing Ltd

Abstract: Abstract Existing studies about airline productivity and cost competitiveness are focusing on combination carriers, transporting both passengers and cargo in the same aircraft and with the same inputs. Scientific research about the cost structure and productive performance of all-cargo carriers is very limited. However, the importance of air cargo and express transport in our globalized economy, the high volatility of all-cargo carriers (especially since the 2008 economic crisis), and the success of integrators show the need for more scientific attention to this industry. This chapter aims at benchmarking the productivity and cost competitiveness of US integrated and non-integrated cargo carriers, based on total factor productivity and unit cost competitiveness analyses. The results unveil a positive correlation between productivity on the one hand and the size of the carrier and its average stage length on the other hand, indicating economies of scale. Correcting the results for such factors beyond managerial control and input prices allows us to measure the impact of the crisis and the consequences for the management of the individual carriers.

Keywords: US air cargo; integrators; productivity; cost competitiveness; D24; L93; R49 (search for similar items in EconPapers)
Date: 2016
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