Abstract

In this paper, the energy efficiency of airlines is measured. Number of employees and tons of aviation kerosene are chosen as the inputs. Revenue tonne kilometers, revenue passenger kilometers, and total business income are the outputs. Capital stock is selected as the dynamic factor. A new model, Virtual Frontier Dynamic range adjusted measure (RAM), is proposed to calculate the energy efficiencies of 22 airlines from 2008 to 2012. In Virtual Frontier Dynamic RAM, the reference DMU (decision-making unit) set and the evaluated DMU set are two different sets to distinguish between efficient DMUs. The results demonstrate the following: (1) Air Greenland exhibits the highest energy efficiency, while the efficiency score of Air France-KLM is at the bottom of the 22 airlines. (2) Aggregate airline energy efficiency consistently increased from 2008 to 2012.

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