Evaluating airline efficiency: An application of Virtual Frontier Network SBM

Transportation Research Part E: Logistics and Transportation Review

Volumn 81, Issue , 2015, Pages 1-17

  Li, Ye ^a   Wang, Yan zhang ^a   Cui, Qiang ^b  

^a DALIAN UNIVERSITY OF TECHNOLOGY   (China)

^b DALIAN MARITIME UNIVERSITY   (China)

Author keywords

Airline efficiency; Evaluation; Virtual Frontier Network SBM

Indexed keywords

AIR TRANSPORTATION; AIRLINE INDUSTRY; STRATEGIC APPROACH; TECHNICAL EFFICIENCY; TRAFFIC CONGESTION;

EID: 84935033094     PISSN: 13665545     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.tre.2015.06.006     Document Type: Article

References (73)

1. Alam I.M.S., Sickles R.C. The relationship between stock market returns and technical efficiency innovations: evidence from the US airline industry. J. Prod. Anal. 1998, 9(1):35-51.
2. Arjomandi A., Seufert J.H. An evaluation of the world's major airlines' technical and environmental performance. Econ. Model. 2014, 41:133-144.
3. Assaf A. Are U.S. airlines really in crisis?. Tourism Manage. 2009, 30:916-921.
4. Assaf A.G., Josiassen A. European vs. US airlines: performance comparison in a dynamic market. Tourism Manage. 2012, 33(2):317-326.
5. Baltagi B.H., Griffin J.M., Rich D.P. Airline deregulation: the cost pieces of the puzzle. Int. Econ. Rev. 1995, 245-258.
6. Banker R.D., Johnston H.H. Evaluating the Impacts of Operating Strategies on Efficiency in the US Airline Industry, Data Envelopment Analysis: Theory, Methodology, and Applications 1994, 97-128. Springer.
7. Barbot C., Costa Á., Sochirca E. Airlines performance in the new market context: a comparative productivity and efficiency analysis. J. Air Transp. Manage. 2008, 14(5):270-274.
8. Barros C.P., Couto E. Productivity analysis of European airlines, 2000-2011. J. Air Transp. Manage. 2013, 31:11-13.
9. Barros C.P., Peypoch N. An evaluation of European airlines' operational performance. Int. J. Prod. Econ. 2009, 122(2):525-533.
10. Barros C.P., Wanke P. An analysis of African airlines efficiency with two-stage TOPSIS and neural networks. J. Air Transp. Manage. 2015, 44:90-102.
11. Barros C.P., Liang Q.B., Peypoch N. The technical efficiency of US airlines. Transport. Res. Part A 2013, 50:139-148.
12. Bauer P.W. Decomposing TFP growth in the presence of cost inefficiency, non constant returns to scale, and technological progress. J. Prod. Anal. 1990, 1(4):287-299.
13. Bhadra D. Race to the bottom or swimming upstream: performance analysis of US airlines. J. Air Transp. Manage. 2009, 15:227-235.
14. Bian Y.W., Xu H. DEA ranking method based upon virtual envelopment frontier and TOPSIS. Syst. Eng. - Theory Pract. 2013, 33(2):482-488. (in Chinese).
15. Capobianco H.M.P., Fernandes E. Capital structure in the world airline industry. Transport. Res. Part A 2004, 38(6):421-434.
16. Caves D.W., Christensen L.R., Tretheway M.W. Economies of density versus economies of scale: why trunk and local service airline costs differ. Rand J. Econ. 1984, 471-489.
17. Chang Y.T., Park H.S., Jeong J.B., Lee J.W. Evaluating economic and environmental efficiency of global airlines: a SBM-DEA approach. Transport. Res. Part D 2014, 27:46-50.
18. Charnes A., Cooper W.W., Rhodes E. Measuring the efficiency of decision making units. Eur. J. Oper. Res. 1978, 2(6):429-444.
19. Chiou Y.C., Chen Y.H. Route-based performance evaluation of Taiwanese domestic airlines using data envelopment analysis. Transport. Res. Part E 2006, 42(2):116-127.
20. Chiu Y.H., Chen Y.C. The analysis of Taiwanese bank efficiency: incorporating both external environment risk and internal risk. Econ. Model. 2009, 26(2):456-463.
21. Choi K., Lee D., Olson D.L. Service quality and productivity in the US airline industry: a service quality-adjusted DEA model. Serv. Bus. 2013, 1-24.
22. Coelli T., Perelman S., Romano E. Accounting for environmental influences in stochastic frontier models: with application to international airlines. J. Prod. Anal. 1999, 11(3):251-273.
23. Cornwell C., Schmidt P., Sickles R.C. Production frontiers with cross-sectional and time-series variation in efficiency levels. J. Econom. 1990, 46(1):185-200.
24. Cui Q., Li Y. The evaluation of transportation energy efficiency: an application of three-stage virtual frontier DEA. Transport. Res. Part D 2014, 29:1-11.
25. Cui Q., Li Y. Evaluating energy efficiency for airlines: an application of VFB-DEA. J. Air Transp. Manage. 2015, 44-45:34-41.
26. Cui Q., Li Y. The change trend and influencing factors of civil aviation safety efficiency: the case of Chinese airline companies. Saf. Sci. 2015, 75:56-63.
27. Cui Q., Li Y. An empirical study on the influencing factors of transportation carbon efficiency: evidences from fifteen countries. Appl. Energy 2015, 141:209-217.
28. Cui Q., Kuang H.B., Wu C.Y., Li Y. Dynamic formation mechanism of airport competitiveness: the case of China. Transport. Res. Part A 2013, 47(1):10-18.
29. Cui Q., Kuang H.B., Wu C.Y., Li Y. The changing trend and influencing factors of energy efficiency: the case of nine countries. Energy 2014, 64:1026-1034.
30. Distexhe V., Perelman S. Technical efficiency and productivity growth in an era of deregulation: the case of airlines. Swiss J. Econ. Stat. 1994, 130(4):669-689.
31. Ehrlich I., Gallais-Hamonno G., Liu Z., Lutter R. Productivity growth and firm ownership: an analytical and empirical investigation. J. Polit. Econ. 1994, 1006-1038.
32. Fethi M.D., Jackson P.M., Weyman-Jones T.G. Measuring the efficiency of European airlines: an application of DEA and Tobit analysis 2000, Annual Meeting of the European Public Choice Society, Siena, Italy.
33. Fethi MD., Jackson PM., Weyman-Jones TG. European airlines: a stochastic DEA study of efficiency with market liberalisation. Loughborough Univ. Inst. Repository 2001.
34. Gillen D.W., Oum T.H., Tretheway M.W. Airline cost structure and policy implications: a multi-product approach for Canadian airlines. J. Transp. Econ. Policy 1990, 9-34.
35. Good D.H., Nadiri M.I., Röller L.H., Sickles R.C. Efficiency and Productivity Growth Comparisons of European and US Air Carriers: a First Look at the Data 1993, Springer, Netherlands.
36. Good D.H., Röller L.H., Sickles R.C. Airline efficiency differences between Europe and the US: implications for the pace of EC integration and domestic regulation. Eur. J. Oper. Res. 1995, 80(3):508-518.
37. Gramani M.C.N. Efficiency decomposition approach: a cross-country airline analysis. Expert Syst. Appl. 2012, 39(5):5815-5819.
38. Greer M. Nothing focuses the mind on productivity quite like the fear of liquidation: changes in airline productivity in the United States, 2000-2004. Transport. Res. Part A 2008, 42:414-426.
39. Greer M. Is it the labor unions' fault?: dissecting the causes of the impaired technical efficiencies of the legacy carriers in the United States. Transport. Res. Part A 2009, 43:779-789.
40. Hong S., Zhang A. An efficiency study of airlines and air cargo/passenger divisions: a DEA approach. World Rev. Intermodal Transport. Res. 2010, 3:137-149.
41. IATA, 2014. http://www.iata.org/Pages/default.aspx.
42. Inglada V., Rey B., Rodríguez-Alvarez A., Coto-Millan P. Liberalisation and efficiency in international air transport. Transport. Res. Part A 2006, 40(2):95-105.
43. Lee B.L., Worthington A.C. Technical efficiency of mainstream airlines and low-cost carriers: new evidence using bootstrap data envelopment analysis truncated regression. J. Air Transp. Manage. 2014, 38:15-20.
44. Li H., Fang K., Yang W., Wang D., Hong X. Regional environmental efficiency evaluation in China: analysis based on the super-SBM model with undesirable outputs. Math. Comput. Modell. 2013, 58(5):1018-1031.
45. Liu F.H.F., Wang P. DEA Malmquist productivity measure: Taiwanese semiconductor companies. Int. J. Prod. Econ. 2008, 112(1):367-379.
46. Lozano S., Gutiérrez E. A slacks-based network DEA efficiency analysis of European airlines. Transport. Plann. Technol. 2014, 37(7):623-637.
47. Lu W.M., Wang W.K., Hung S.W., Lu E.T. The effects of corporate governance on airline performance: production and marketing efficiency perspectives. Transport. Res. Part E 2012, 48(2):529-544.
48. Mallikarjun S. Efficiency of US airlines: a strategic operating model. J. Air Transp. Manage. 2015, 43:46-56.
49. Merkert R., Hensher D.A. The impact of strategic management and fleet planning on airline efficiency - a random effects Tobit model based on DEA efficiency scores. Transport. Res. Part A 2011, 45(7):686-695.
50. Miyoshi, C., Merkert, R., 2010. Changes in carbon efficiency, unit cost of firms over time and the impacts of the fuel price-an empirical analysis of major European airlines. In: Proceedings of the 14th Air Transport Research Society (ATRS) World Conference, Porto, Portugal.
51. Morrell P.S., Taneja N.K. Airline productivity redefined: an analysis of US and European carriers. Transportation 1979, 8(1):37-49.
52. Ouellette P., Petit P., Tessier-Parent L.P., Vigeant S. Introducing regulation in the measurement of efficiency, with an application to the Canadian air carriers industry. Eur. J. Oper. Res. 2010, 200:216-226.
53. Oum T.H., Yu C. A productivity comparison of the world's major airlines. J. Air Transp. Manage. 1995, 2(3):181-195.
54. Oum T.H., Yu C. Cost competitiveness of major airlines: an international comparison. Transport. Res. Part A 1998, 32(6):407-422.
55. Oum T.H., Fu X., Yu C. New evidences on airline efficiency and yields: a comparative analysis of major North American air carriers and its implications. Transp. Policy 2005, 12(2):153-164.
56. Pearson R.G., Dawson T.P., Berry P.M., Harrison P.A. SPECIES: a spatial evaluation of climate impact on the envelope of species. Ecol. Model. 2002, 154(3):289-300.
57. Ray S.C., Mukherjee K. Decomposition of the Fisher ideal index of productivity: a non-parametric dual analysis of US airlines data. Econ. J. 1996, 1659-1678.
58. Schefczyk M. Operational performance of airlines: an extension of traditional measurement paradigms. Strateg. Manage. J. 1993, 14(4):301-317.
59. Scheraga C.A. The relationship between operational efficiency and customer service: a global study of thirty-eight large international airlines. Transport. J. 2004, 43:48-58.
60. Schmidt P., Sickles R.C. Production frontiers and panel data. J. Bus. Econ. Stat. 1984, 2:367-374.
61. Semenick Alam I.M., Sickles R.C. Time series analysis of deregulatory dynamics and technical efficiency: the case of the US airline industry. Int. Econ. Rev. 2000, 41(1):203-218.
62. Sengupta J.K. A dynamic efficiency model using data envelopment analysis. Int. J. Prod. Econ. 1999, 62(3):209-218.
63. Sickles R.C., Good D., Johnson R.L. Allocative distortions and the regulatory transition of the US airline industry. J. Econom. 1986, 33:143-163.
64. Sickles R.C., Good D.H., Getachew L. Specification of distance functions using semi-and nonparametric methods with an application to the dynamic performance of eastern and western European air carriers. J. Prod. Anal. 2002, 17(1-2):133-155.
65. Tavassoli M., Faramarzi G.R., Saen R.F. Efficiency and effectiveness in airline performance using a SBM-NDEA model in the presence of shared input. J. Air Transp. Manage. 2014, 34:146-153.
66. Tone K. A slacks-based measure of efficiency in data envelopment analysis. Eur. J. Oper. Res. 2001, 130(3):498-509.
67. Tone K., Tsutsui M. Network DEA: a slacks-based measure approach. Eur. J. Oper. Res. 2009, 197(1):243-252.
68. Tone K., Tsutsui M. Dynamic DEA: a slacks-based measure approach. Omega 2010, 38(3):145-156.
69. Tsikriktsis N., Heineke J. The impact of process variation on customer dissatisfaction: evidence from the US domestic airline industry. Decis. Sci. 2004, 35(1):129-141.
70. Wang W.K., Lu W.M., Tsai C.J. The relationship between airline performance and corporate governance amongst US listed companies. J. Air Transp. Manage. 2011, 17(2):148-152.
71. Wu W.Y., Liao Y.K. A balanced scorecard envelopment approach to assess airlines' performance. Ind. Manage. Data Syst. 2014, 114:123-143.
72. Zhu J. Airlines performance via two-stage network DEA approach. J. CENTRUM Cathedra: Bus. Econ. Res. J. 2011, 4:260-269.
73. Zou B., Elke M., Hansen M., Kafle N. Evaluating air carrier fuel efficiency in the US airline industry. Transport. Res. Part A 2014, 59:306-330.