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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. [Working Paper] (Unpublished)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: 20 Aug 2011 19:58

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