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Airlines performance in the new market context: A comparative productivity and efficiency analysis

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  • Barbot, Cristina
  • Costa, Ã lvaro
  • Sochirca, Elena

Abstract

This paper analyses airlines’ efficiency and productivity using two different methodologies: data envelopment analysis and total factor productivity, and we additionally investigate which factors account for differences in efficiency. Our main findings show that low-cost carriers are in general more efficient than full-service carriers, efficiency and the dispersion of both data envelopment analysis and total factor productivity indexes amongst airlines differ according to geographical areas, which may be a result of different legislation and de-regulation processes, and so of specific competitive conditions, labour is the only input that definitively influences productivity, and larger airlines are more efficient, suggesting the existence of economies of scale.

Suggested Citation

  • Barbot, Cristina & Costa, Ã lvaro & Sochirca, Elena, 2008. "Airlines performance in the new market context: A comparative productivity and efficiency analysis," Journal of Air Transport Management, Elsevier, vol. 14(5), pages 270-274.
  • Handle: RePEc:eee:jaitra:v:14:y:2008:i:5:p:270-274
    DOI: 10.1016/j.jairtraman.2008.05.003
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    References listed on IDEAS

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    1. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
    2. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    3. Oum, Tae Hoon & Yu, Chunyan, 1995. "A productivity comparison of the world's major airlines," Journal of Air Transport Management, Elsevier, vol. 2(3), pages 181-195.
    4. R. Färe & S. Grosskopf & R. C. Sickles, 2007. "Productivity? of US Airlines After Deregulation," Journal of Transport Economics and Policy, University of Bath, vol. 41(1), pages 93-112, January.
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    Keywords

    Efficiency; Productivity; Airlines;

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