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Productivity comparison of European airlines: bootstrapping Malmquist indices

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  • Chyan Yang
  • Tung-Pao Wang

Abstract

The study explored the operating efficiency and variability of productivity estimates of European airlines. We applied Malmquist productivity indices (MPI) with a bootstrap method to assess the productivities of European airlines in four regions in Europe. The productivity of small-sized airlines lagged further behind that of large-sized airlines because of their inferior technological change (TC) effects derived from inefficient resource allocation to sustain a competitive advantage. This study also indicated that the Western European airlines were more efficient on average than those in other areas of Europe. The applications of Malmquist productivity techniques in assessing the performance of European airlines are highlighted in their effective resource allocation, sustained competitive advantage and optimized operating performance.

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  • Chyan Yang & Tung-Pao Wang, 2016. "Productivity comparison of European airlines: bootstrapping Malmquist indices," Applied Economics, Taylor & Francis Journals, vol. 48(52), pages 5106-5116, November.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5106-5116
    DOI: 10.1080/00036846.2016.1170937
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    Cited by:

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    2. Dong‐Sing He & Imen Tebourbi, 2021. "Measuring the continuation effects of market order entry: A dynamic model," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 762-777, April.
    3. Losa, Eduardo Tola & Arjomandi, Amir & Hervé Dakpo, K. & Bloomfield, Jason, 2020. "Efficiency comparison of airline groups in Annex 1 and non-Annex 1 countries: A dynamic network DEA approach," Transport Policy, Elsevier, vol. 99(C), pages 163-174.
    4. Zhang, Lina & Gao, Wanting & Chiu, Yung-ho & Pang, Qinghua & Shi, Zhen & Guo, Zhiqin, 2021. "Environmental performance indicators of China's coal mining industry: A bootstrapping Malmquist index analysis," Resources Policy, Elsevier, vol. 71(C).
    5. Yu, Ming-Miin & Chen, Li-Hsueh, 2023. "Productivity change of airlines: A global total factor productivity index with network structure," Journal of Air Transport Management, Elsevier, vol. 109(C).
    6. Yen, Barbara T.H. & Li, Jun-Sheng, 2022. "Route-based performance evaluation for airlines – A metafrontier data envelopment analysis approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 162(C).

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