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Efficiency evaluation of Brazilian airlines operations considering the Covid-19 outbreak

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  • Pereira, Deivison da Silveira
  • Soares de Mello, João Carlos C.B.

Abstract

In this paper we evaluate the operational efficiency of the Brazilian airlines considering the novel coronavirus Covid-19 outbreak. This novel coronavirus was first reported end of 2019 in Wuhan, China, however the powerful contamination spread among people forced the World Health Organization to characterize the Covid-19 as a pandemic in March of 2020. Here we analyze the main Brazilian airlines operations response due to lower demand because Covid-19 outbreak in first quarter of 2020 comparing with first quarter of 2019. The analysis here aims to verify the efficiency of airlines in domestic air transport market in Brazil through Multicriteria Data Envelopment Analysis (MCDEA) model. We used MCDEA to avoid limitations of classical DEA models for the case, especially the numbers of decision units and variable. In this paper we used an improvement of the MCDEA model to seek benchmarks considering a dual model all objective functions of MCDEA. The results highlight the challenges for the airlines, due to flight restriction and demand dropping. And also, the evaluation exposes the different company configuration of aircrafts age and network reconfiguration which was reflected by the efficiency difference on the period. The assessment shows the company with a better mix of aircraft models has a leverage on efficiency response due to unpredictable period as the pandemic Covid-19 outbreak.

Suggested Citation

  • Pereira, Deivison da Silveira & Soares de Mello, João Carlos C.B., 2021. "Efficiency evaluation of Brazilian airlines operations considering the Covid-19 outbreak," Journal of Air Transport Management, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:jaitra:v:91:y:2021:i:c:s0969699720305597
    DOI: 10.1016/j.jairtraman.2020.101976
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    1. Sun, Xiaoqian & Wandelt, Sebastian & Zheng, Changhong & Zhang, Anming, 2021. "COVID-19 pandemic and air transportation: Successfully navigating the paper hurricane," Journal of Air Transport Management, Elsevier, vol. 94(C).
    2. Yu, Ming-Miin & Rakshit, Ipsita, 2023. "Target setting for airlines incorporating CO2 emissions: The DEA bargaining approach," Journal of Air Transport Management, Elsevier, vol. 108(C).
    3. Mutascu, Mihai & Sokic, Alexandre, 2023. "Air transportation under COVID-19 pandemic restrictions: A wavelet analysis," Transport Policy, Elsevier, vol. 139(C), pages 155-181.
    4. Sun, Xiaoqian & Wandelt, Sebastian & Zhang, Anming, 2022. "STARTUPS: Founding airlines during COVID-19 - A hopeless endeavor or an ample opportunity for a better aviation system?," Transport Policy, Elsevier, vol. 118(C), pages 10-19.

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