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Liberalisation and efficiency in international air transport

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  • Inglada, Vicente
  • Rey, Belen
  • Rodri­guez-Alvarez, Ana
  • Coto-Millan, Pablo

Abstract

This paper sets out to compare the economic and technical efficiency of international air transport companies, within the new liberalisation framework that characterises the period of 1996-2000. For this purpose, two stochastic frontiers are estimated, one for cost function, the other for production function. From these estimations we obtain indexes for, respectively, economic and technical efficiency. Our evidence suggests that the benefits of increasing competition in terms of efficiency, is being large for the Asian companies.

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Bibliographic Info

Article provided by Elsevier in its journal Transportation Research Part A: Policy and Practice.

Volume (Year): 40 (2006)
Issue (Month): 2 (February)
Pages: 95-105

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Handle: RePEc:eee:transa:v:40:y:2006:i:2:p:95-105

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References

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  1. J. A. Hausman, 1976. "Specification Tests in Econometrics," Working papers 185, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. Peter Forsyth & Rob Hill & Chris Trengrove, 1986. "Measuring airline efficiency," Fiscal Studies, Institute for Fiscal Studies, vol. 7(1), pages 61-81, February.
  3. Adler, Nicole & Golany, Boaz, 2001. "Evaluation of deregulated airline networks using data envelopment analysis combined with principal component analysis with an application to Western Europe," European Journal of Operational Research, Elsevier, vol. 132(2), pages 260-273, July.
  4. Chin, Anthony T.H., 1997. "Implications of liberalisation on airport development and strategy in the Asia Pacific," Journal of Air Transport Management, Elsevier, vol. 3(3), pages 125-131.
  5. Schmidt, Peter & Sickles, Robin C, 1984. "Production Frontiers and Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 367-74, October.
  6. Oum, Tae Hoon & Lee, Yeong Heok, 2002. "The Northeast Asian air transport network: is there a possibility of creating Open Skies in the region?," Journal of Air Transport Management, Elsevier, vol. 8(5), pages 325-337.
  7. Encaoua, David, 1991. "Liberalizing European airlines : Cost and factor productivity evidence," International Journal of Industrial Organization, Elsevier, vol. 9(1), pages 109-124, March.
  8. Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 39-56.
  9. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
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Cited by:
  1. Givoni, Moshe & Rietveld, Piet, 2009. "Airline's choice of aircraft size - Explanations and implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(5), pages 500-510, June.
  2. Lee, Boon L. & Worthington, Andrew C., 2014. "Technical efficiency of mainstream airlines and low-cost carriers: New evidence using bootstrap data envelopment analysis truncated regression," Journal of Air Transport Management, Elsevier, vol. 38(C), pages 15-20.
  3. Boon L Lee & Clevo Wilson & Carl A Pasurka, Jr, 2013. "The Good, the Bad and the Efficient: Productivity, efficiency and technical change in the Airline Industry, 2004:2008," School of Economics and Finance Discussion Papers and Working Papers Series 299, School of Economics and Finance, Queensland University of Technology.
  4. Greer, Mark R., 2008. "Nothing focuses the mind on productivity quite like the fear of liquidation: Changes in airline productivity in the United States, 2000-2004," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(2), pages 414-426, February.
  5. Mario Larch, 2005. "The Multinationalization of the Transport Sector," Tinbergen Institute Discussion Papers 05-019/2, Tinbergen Institute.
  6. Barros, Carlos P. & Liang, Qi Bin & Peypoch, Nicolas, 2013. "The technical efficiency of US Airlines," Transportation Research Part A: Policy and Practice, Elsevier, vol. 50(C), pages 139-148.
  7. Correia, Anderson R. & Wirasinghe, S.C. & de Barros, Alexandre G., 2008. "Overall level of service measures for airport passenger terminals," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(2), pages 330-346, February.
  8. Teichert, Thorsten & Shehu, Edlira & von Wartburg, Iwan, 2008. "Customer segmentation revisited: The case of the airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 227-242, January.
  9. Barros, Carlos Pestana & Peypoch, Nicolas, 2009. "An evaluation of European airlines' operational performance," International Journal of Production Economics, Elsevier, vol. 122(2), pages 525-533, December.
  10. Zou, Bo & Elke, Matthew & Hansen, Mark & Kafle, Nabin, 2014. "Evaluating air carrier fuel efficiency in the US airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 306-330.

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