RANKING COMPANIES IN INDIAN AVIATION SECTOR BASED ON EFFICIENCY: AN ANDERSON PETERSON SUPER-EFFICIENCY MODEL

Abstract

The Indian aviation industry, an integral part of Indian transport network, plays a crucial role in connecting people, economies, and cultures. Indian aviation industry is highly competitive and its operational efficiency is of paramount importance to sustain profitability, to enhance customer satisfaction, and to maintain a competitive edge of the industry. The primary objective of the current study is to explore the concept of super efficiency on six major airline companies operating in India covering both the full service and low-cost carriers using secondary data drawn from various sources from the financial year 2004-05 to 2018-19. Super efficiency is an advanced DEA tool that extends beyond conventional efficiency measures. It provided the opportunity to conduct a more refined analysis of airline efficiency. Furthermore, the super efficiency score derived from the analysis is utilised for the ranking of decision-making units (DMUs) that are efficient in conventional terms. With a view to achieving these objectives, the current study employs a robust methodological approach, utilizing a dataset comprising various performance indicators from select airline companies. The research finds that Go Air is the most efficient airline in analysing airline efficiency through the lens of super efficiency. However, Air India is ranked first based on super efficiency scores of the aviation companies in different years