CHINESE AIRLINE COMPETITIVENESS EVALUATION BASED ON EXTENDED BINARY RELATIVE EVALUATION(BRE) MODEL

Chong Wu,Xinying Zhang,Brad O’Brien,Yongli Li,Xin Wang

doi:10.3846/16111699.2012.721391

Abstract

In order to eliminate the impact of the sample's objective merits on the evaluation results, this research built a two-stage model of Chinese airline competitiveness evaluation to reflect the subjective management and performance. In the first stage, Analytic Hierarchy Process (AHP) and Factor Analysis (FA) models were used to analyze the data from 2008 to 2009. In the second stage, two kinds of comprehensive evaluation indexes in 2008 were taken as the reference index set, and two kinds of comprehensive evaluation indexes in 2009 as the current index set. The four sets of data were calculated with the Group Decision-making Model Based on Data Envelopment Analysis (DEA) with Restraint Cone. This paper has (1) enriched the theory of airline competitiveness,(2) built a more scientific and comprehensive evaluation index system of airlines’ competitiveness, (3) constructed a competitiveness evaluation model based on BRE, and (4) conducted an empirical study of the improved model based on the 2008 and 2009 data from 15 Chinese airlines. The ranking results of the proposed method, theory and model coincide with the real conditions of the airline market demonstrating that our evaluation of airline competitiveness based on BRE is accurate, reliable and objective.

Highlights

With the economic globalization and the in-depth development of regional economic integration, the Chinese aviation market is gradually opening up, and the liberalization of international air transportation will be more rapid and profound
Wu et al Chinese airline competitiveness evaluation based on extended binary relative evaluation (BRE) model airlines will enter China, and airlines from different countries will enter a new era of competition in China
If there are negative figures in the four sets of data obtained by Analytic Hierarchy Process (AHP) and Factor Analysis (FA), we will use the maximum difference dormalization method to process the reference and the current competitiveness evaluation figures to ensure that the data are positive and to meet the premise that Data Envelopment Analysis (DEA) model requires all the input and output data to be positive

Summary

Introduction

With the economic globalization and the in-depth development of regional economic integration, the Chinese aviation market is gradually opening up, and the liberalization of international air transportation will be more rapid and profound. According to the World Trade Organization (WTO) rules and the basic commitments of WTO, foreign. C. Wu et al Chinese airline competitiveness evaluation based on extended binary relative evaluation (BRE) model airlines will enter China, and airlines from different countries will enter a new era of competition in China. Facing tough challenges and fierce competition, an imperative task for every airline that will take part in the Chinese aviation market will be to understand the comprehensive competitiveness of Chinese airlines

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Results

Conclusion