Abstract
This paper explores the impact of an international focus, the proportion of cargo traffic, and the level of salaries on the operational efficiency of Chinese airlines and other non-Chinese airlines. Data envelopment analysis (DEA) is employed to evaluate the operational efficiency and a bootstrapped truncated regression is applied to explore the impact of environmental variables on efficiency. The results show that an international focus has a negative impact, while the level of salaries has a positive impact. Also, we demonstrate that there is an inverted U-shaped relationship between efficiency and the proportion of cargo traffic.
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