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Total factor productivity analysis of Malaysia Airlines: Lessons from the past and directions for the future

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  • See, Kok Fong
  • Abdul Rashid, Azwan

Abstract

The main objective of the study is to measure the total factor productivity (TFP) growth of Malaysia Airlines (MAS) over a 34-year period from 1980 to 2013 using a Törnqvist index method. Labour, capital, fuel and other inputs are selected as input measures, whereas the number of passengers, cargo and mail carried and non-traffic revenue are chosen as output measures in the measurement of MAS's productivity. The study revealed that MAS obtained a slow growth in TFP over the study period. The results showed that the privatisation of MAS was not sufficient to produce improved TFP performance. Furthermore, the study also found that the average stage length and load factor are interrelated with the TFP levels in a positive direction. Overall, this study extends the discussion of efficiency and productivity in the airline industry in Malaysia.

Suggested Citation

  • See, Kok Fong & Abdul Rashid, Azwan, 2016. "Total factor productivity analysis of Malaysia Airlines: Lessons from the past and directions for the future," Research in Transportation Economics, Elsevier, vol. 56(C), pages 42-49.
    • Handle: RePEc:eee:retrec:v:56:y:2016:i:c:p:42-49
    DOI: 10.1016/j.retrec.2016.07.004
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    Cited by:

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    2. Hai Quang Nguyen, 2021. "Total Factor Productivity Growth of Vietnamese Enterprises by Sector and Region: Evidence from Panel Data Analysis," Economies, MDPI, vol. 9(3), pages 1-17, August.
    3. Barnabé Walheer, 2019. "Dynamic directional nonparametric profit efficiency analysis for a single decision-making unit: an aggregation approach," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(4), pages 1123-1149, December.

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    More about this item

    Keywords

    Productivity growth; Malaysia Airlines; Törnqvist index;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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