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The Relative Efficiency of International, Domestic, and Budget Airlines : Nonparametric Evidence

Lee, Boon & Worthington, Andrew (2010) The Relative Efficiency of International, Domestic, and Budget Airlines : Nonparametric Evidence. Griffith Business School, Griffith University, Brisbane Australia. [Working Paper] (Unpublished)

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Abstract

This study determines whether the inclusion of low-cost airlines in a dataset of international and domestic airlines has an impact on the efficiency scores of so-called ‘prestigious’ purportedly ‘efficient’ airlines. This is because while many airline studies concern efficiency, none has truly included a combination of international, domestic and budget airlines. The present study employs the nonparametric technique of data envelopment analysis (DEA) to investigate the technical efficiency of 53 airlines in 2006. The findings reveal that the majority of budget airlines are efficient relative to their more prestigious counterparts. Moreover, most airlines identified as inefficient are so largely because of the overutilization of non-flight assets.

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ID Code: 44031
Item Type: Working Paper
Keywords: data envelopment analysis, efficiency, airlines
ISSN: 1837-7750
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200)
Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200) > Transport Economics (140217)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Copyright Owner: Copyright 2010 the authors.
Deposited On: 18 Aug 2011 15:16
Last Modified: 26 Mar 2014 10:05

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