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Public, private and mixed ownership and the performance of international airlines


  • Backx, Mattijs
  • Carney, Michael
  • Gedajlovic, Eric


Many airlines are neither completely public nor private enterprises but have hybrid or mixed public-private ownership. Theory and evidence regarding the performance of private, public and mixed ownership are addressed in the context of the international airline industry. The study empirically examines the influence of an airline's ownership structure on multiple dimensions of its performance. In general, the results indicate that public sector airlines under-perform relative private sector airlines. In addition, we find that airlines with mixed ownership tend to perform better than public sector airlines, but worse than private sector carriers.

Suggested Citation

  • Backx, Mattijs & Carney, Michael & Gedajlovic, Eric, 2002. "Public, private and mixed ownership and the performance of international airlines," Journal of Air Transport Management, Elsevier, vol. 8(4), pages 213-220.
  • Handle: RePEc:eee:jaitra:v:8:y:2002:i:4:p:213-220
    DOI: 10.1016/S0969-6997(01)00053-9

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    References listed on IDEAS

    1. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    2. Attiat F. Ott & Keith Hartley (ed.), 1991. "Privatization And Economic Efficiency," Books, Edward Elgar Publishing, number 345.
    3. repec:hrv:faseco:30728046 is not listed on IDEAS
    4. De Alessi, Louis, 1983. "Property Rights, Transaction Costs, and X-Efficiency: An Essay in Economic Theory," American Economic Review, American Economic Association, vol. 73(1), pages 64-81, March.
    5. Demsetz, Harold & Lehn, Kenneth, 1985. "The Structure of Corporate Ownership: Causes and Consequences," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1155-1177, December.
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    5. Oum, Tae H. & Adler, Nicole & Yu, Chunyan, 2006. "Privatization, Corporatization, Ownership Forms and their Effects on the Performance of the World’s Major Airports," 47th Annual Transportation Research Forum, New York, New York, March 23-25, 2006 208026, Transportation Research Forum.
    6. Aidan R. VINING & Anthony E. BOARDMAN & Mark A. MOORE, 2014. "The Theory And Evidence Pertaining To Local Government Mixed Enterprises," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 53-86, March.
    7. Manipushpak Mitra & Rupayan Pal & Arindam Paul & P. M. Sharada, 2020. "Equilibrium Coexistence of Public and Private Firms and the Plausibility of Price Competition," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 176(2), pages 217-242.
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    9. Abate, Megersa & Christidis, Panayotis & Purwanto, Alloysius Joko, 2020. "Government support to airlines in the aftermath of the COVID-19 pandemic," Journal of Air Transport Management, Elsevier, vol. 89(C).
    10. Brooks, Mary R. & Cullinane, Kevin, 2006. "Chapter 26 Conclusions and Research Agenda," Research in Transportation Economics, Elsevier, vol. 17(1), pages 631-660, January.
    11. Lu, Wen-Min & Wang, Wei-Kang & Hung, Shiu-Wan & Lu, En-Tzu, 2012. "The effects of corporate governance on airline performance: Production and marketing efficiency perspectives," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 529-544.
    12. Kiesel, Florian & Ries, Jörg M. & Tielmann, Artur, 2017. "The impact of mergers and acquisitions on shareholders' wealth in the logistics service industry," International Journal of Production Economics, Elsevier, vol. 193(C), pages 781-797.
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    14. Oum, Tae H. & Adler, Nicole & Yu, Chunyan, 2006. "Privatization, corporatization, ownership forms and their effects on the performance of the world's major airports," Journal of Air Transport Management, Elsevier, vol. 12(3), pages 109-121.

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