Evaluating competitiveness using fuzzy analytic hierarchy process—A case study of Chinese airlines

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SUMMARYWith the development of a national market economy, the Chinese aviation industry is now confronted with international competition. Therefore, it is necessary to research the competitive status of Chinese national aviation, as well as advice on how to enhance the competitiveness of the Chinese aviation industry. The main objective of this paper is to propose FAHP as an effective solution for resolving the uncertainty and imprecision in the evaluation of airlines' competitiveness. In this paper, we review the research of industrial international aviation competitiveness at both home and abroad, discuss a theoretical framework for the study of aviation competitiveness, establish an index system with five first‐order indicators and 17 second‐order indicators, set up a Chinese aviation competitiveness model based on simple fuzzy numbers from the fuzzy analytic hierarchy process, and evaluate the competitiveness of five major Chinese airlines. The results showed that this model and these indicators are scientific and practical, with a wide range of application prospects for the purpose of improving and increasing Chinese airline competitiveness in the international market. The effective approach presented in this paper is especially applicable when subjective judgments on performance ratings and attribute weights are not accessible or reliable, or when suitable decision makers are not available. Copyright © 2011 John Wiley & Sons, Ltd.