Technical efficiency of mainstream airlines and low-cost carriers : New evidence using bootstrap data envelopment analysis truncated regression

Lee, Boon L. & Worthington, Andrew C. (2014) Technical efficiency of mainstream airlines and low-cost carriers : New evidence using bootstrap data envelopment analysis truncated regression. Journal of Air Transport Management, 38, pp. 15-20.

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Between 2001 and 2005, the US airline industry faced financial turmoil while the European airline industry entered a period of substantive deregulation. Consequently, this opened up opportunities for low-cost carriers to become more competitive in the market. To assess airline performance and identify the sources of efficiency in the immediate aftermath of these events, we employ a bootstrap data envelopment analysis truncated regression approach. The results suggest that at the time the mainstream airlines needed to significantly reorganize and rescale their operations to remain competitive. In the second-stage analysis, the results indicate that private ownership, status as a low-cost carrier, and improvements in weight load contributed to better organizational efficiency.

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19 citations in Scopus
12 citations in Web of Science®
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ID Code: 66114
Item Type: Journal Article
Refereed: Yes
Additional URLs:
Keywords: Data envelopment analysis, Technical efficiency, Bootstrap truncated regression, Mainstream and low-cost carriers
DOI: 10.1016/j.jairtraman.2013.12.013
ISSN: 1873-2089
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Copyright Owner: Copyright 2013 Elsevier Ltd.
Copyright Statement: NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Air Transport Management. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Air Transport Management, [Volume 38, (June 2014)] DOI: 10.1016/j.jairtraman.2013.12.013
Deposited On: 14 Jan 2014 02:08
Last Modified: 18 Jul 2015 04:29

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