Airline efficiency measures considering undesirable outputs: an application of a network slack-based measures with double frontiers

Abstract

In the context of stricter environmental regulations and more intense market competition, how to improve the efficiency of airlines has become a hot topic. In this paper, we construct a Network Slack-Based Measures (NSBM) model with double frontiers to evaluate airlines from an optimistic perspective, a pessimistic view, and the integration of optimistic and pessimistic viewpoints. The empirical study is based on data for 24 global airlines in 2018 and considers two situations when there is only crisp data and when there exists interval data. A three-stage network model (including operation stage, service stage, and sales stage) is constructed to explore the driving factors of airline efficiency. The results show that optimistic efficiency targets efficient stages, while pessimistic efficiency is more capable of finding the inefficient stages.