Abstract

The productivity change in the Canadian Level I and Level II airlines during the period 1960-76 are examined. The Level I airlines consist of Air Canada and CP Air which accounts for some 79% of total Canadian revenue ton-miles performed in 1976. The Level II carriers comprise the five regional carriers-Pacific Western Airlines, Transair, Nordair, Quebecair and Eastern Provincial Airways which together accounted for 13% of 1976. Canadian airline output. The objective of the productivity analysis is to assign changes in airline output to two categories: changes due to increased use of inputs such as labor, capital, materials and fuel; and changes due to increased productivity attributable to the improved quality of inputs or to greater efficiency in resource use. Airline output and resource inputs are studied, as well as partial productivity measures. Total factor productivity is discussed, and future implications are considered.

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