Efficiency Of Airlines Research Articles

Airline efficiency performance in the turbulent period before and after economic crisis

Airline efficiency performance in the turbulent period before and after economic crisis

Measuring the energy efficiency for airlines under the pressure of being included into the EU ETS

SummaryIn 2008, European Union (EU) announced that from 2012, each international flight taking off and landing in EU would be given an emission permit. Therefore, the period of 2008–2012 can be regarded as a buffer period for global airlines. Although EU formally decides to exclude non‐EU airlines from the EU Emission Trading System on March 4, 2014, it is necessary to investigate the impacts of the policy on airline energy efficiency in this period. Airline energy efficiency is divided into three stages—operations stage, service stage, and sales stage—and Greenhouse gas emission is treated as an undesirable output of service stage. Two models, network range‐adjusted measure model with weak disposability and network range‐adjusted measure model with strong disposability, are established to evaluate the efficiencies of 22 international airlines from 2008 to 2012. The results show that (i) most airlines' efficiencies have decreased in the period, and the EU Emission Trading System is not effective for the efficiency improvement; (ii) the average efficiency of European airlines is almost the same as that of non‐European airlines; and (iii) the model with weak disposability is more reasonable in distinguishing efficiency differences, while strong disposability is a more reasonable way in treating undesirable outputs. Copyright © 2016 John Wiley & Sons, Ltd.

Airline energy efficiency measures considering carbon abatement: A new strategic framework

In this paper, airline energy efficiency is divided into two stages: Operations Stage and Carbon Abatement Stage. This new two-stage operating framework is a modification of existing ones. Then the model, Network SBM with weak disposability, is presented to evaluate the efficiency of 22 international airlines from 2008 to 2012. The results show that: (1) Most airlines’ energy efficiencies have not declined in the period. (2) The average efficiency of European airlines is higher than that of non-European airlines. (3) Non-European airlines have smaller advancements in efficiency score than European airlines. (4) Most airlines’ efficiencies in Operations Stage are higher than Carbon Abatement Stage.

Air Transport Development: A Comparative Analysis of China and India

China and India have attracted the attention of the world in the last two decades as powerhouses of economic growth. However, scholarly studies comparing the development of two aviation markets and the market outcomes for the two countries are lacking. This paper offers the first such comparative study, with a focus on the efficiency and productivity of airlines of the two countries. The study reviews the evolution of the air transport industry in China and India, and then assesses the efficiency performances of the state-owned and privately-owned airlines in the two markets. It is found that Indian carriers tend to be more efficient than their Chinese counterparts, and that Air India and Spring Airlines are the leaders in terms of achieving technical efficiency. The dominant status of the private airlines in the Indian market does not come by chance. The analysis shows that China’s aviation policy has long been hostile to the private carriers and various obstacles to their expansion and growth still remain. In contract, Indian private airlines, especially the low-cost carriers, have enjoyed more freedom and received support from a comprehensive air liberalization program.

Exploring Energy Efficiency and Service Quality of Airlines with Cruise Speed Control

Exploring Energy Efficiency and Service Quality of Airlines with Cruise Speed Control

Has airline efficiency affected by the inclusion of aviation into European Union Emission Trading Scheme? Evidences from 22 airlines during 2008–2012

We investigate the impacts of including aviation into European Union Emission Trading Scheme on airline efficiency since 2008. Airline efficiency is divided into three stages: Operations Stage, Services Stage and Sales Stage, and Greenhouse Gases Emission is treated as an undesirable output of Services Stage. Two models, Network Slacks-Based Measure with weak disposability and Network Slacks-Based Measure with strong disposability, are established to evaluate the efficiencies of 22 international airlines from 2008 to 2012. The results show that: (1) Most airlines' efficiencies have increased in the period. (2) The average efficiency of European airlines is much higher than that of non-European airlines. (3) The model with weak disposability is more reasonable in distinguishing the airline efficiency while strong disposability is a more reasonable way in treating undesirable outputs.

Analysis of fuel efficiency of largest European airlines in the context of climate change mitigation

In recent years Greenhouse Gas (GHG) emissions released by aircraft engine and their contribution to climate change gained major importance among airlines operating across European Union member countries after the inclusion of the aviation sector in the European Union Emissions Trading Scheme (EU ETS). According to EU ETS, all intra-community flights became subject to GHG emission restrictions since the year 2012 with allocated annual carbon dioxide emission allowances that airlines will have to comply with. This research presents estimations of fuel consumption and carbon dioxide emissions among flight operations of aircraft used by largest European airlines in chosen flight routes of high daily passenger demand. Results show that some alternatives remain available for European airlines and some opportunities may emerge to reduce costs and increase revenues through enhanced engagement with air passengers towards a more environmentally friendly behaviour.

Energy efficiency measures for airlines: An application of virtual frontier dynamic range adjusted measure

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.

Network bipartivity and the transportation efficiency of European passenger airlines

The analysis of the structural organization of the interaction network of a complex system is central to understand its functioning. Here, we focus on the analysis of the bipartivity of graphs. We first introduce a mathematical approach to quantify bipartivity and show its implementation in general and random graphs. Then, we tackle the analysis of the transportation networks of European airlines from the point of view of their bipartivity and observe significant differences between traditional and low cost carriers. Bipartivity shows also that alliances and major mergers of traditional airlines provide a way to reduce bipartivity which, in its turn, is closely related to an increase of the transportation efficiency.

An analysis of Asian airlines efficiency with two-stage TOPSIS and MCMC generalized linear mixed models

This study reports on the performance assessment of the Asian airlines using TOPSIS – a multi-criteria decision making technique – as the cornerstone method to compute efficiency scores. Subsequently, and observing indicators frequently found in literature, TOPSIS results on efficiency levels are combined with GLMM-MCMC methods to assess the impact of contextual variables on performance. The results reveal significant impacts of cost structure, ownership type, market positioning, and mileage program offered on efficiency levels. Findings also suggest that gains in efficiency level were stagnated over the period analyzed, implying the inexistence of a learning curve.

Evaluating airline efficiency: An application of Virtual Frontier Network SBM

In this paper, airline efficiency is divided into three stages: Operations Stage, Services Stage and Sales Stage. The new three-stage strategic operating framework of airline efficiency is a modification of existing models. A new model, Virtual Frontier Network SBM, is proposed to evaluate the efficiency of 22 international airlines from 2008 to 2012. The results demonstrate the following: 1. The new model can apply to a new benchmarking airline such as Scandinavian Airlines. 2. Although passenger traffic, cargo traffic and revenue decreased from 2008 to 2009, most airlines’ overall efficiency increased in the period.

An analysis of the greenhouse gas emissions profile of airlines flying the Australian international market

International commercial flights (with the exception of flights between countries in European Union including Iceland, Norway and Liechtenstein) are currently not subject to greenhouse gas emission reduction regulation. To formulate effective and efficiency policy to manage greenhouse gas emissions from air transport, policy makers need to determine the emissions profiles of all airlines currently flying into their country or region. In this paper, we use 2012 data on airlines' aircraft characteristics, passenger load and cargo load (obtained from statistics reported by Australian Government Bureau of Infrastructure, Transport and Regional Economics) to estimate the volume and carbon efficiency on each international route flying to and from Australia. This is the first study to use actual passenger and cargo load data to determine the greenhouse gas (specifically CO2) efficiency of airlines operating in the Australian international aviation market. Airlines' CO2 emission profile is dependent on many factors including but not limited to the aircraft used, payload, route taken, weather conditions. Our results reveal that the airlines’ CO2 emission profile is not only dependent on the aircraft used and the number of passengers but also the amount of cargo on each flight.

Comparative Analysis of Operational Efficiency of Major Airlines in Asia-Pacific Region

This paper uses various Data Envelopment Analysis (SBM-DEA) approaches to study the efficiency of major airlines in Asia-Pacific region. To evaluate the operation efficiency of fourteen major airlines in Asia-Pacific region from 2003-2011, Available Seat Kilometers(ASK), Available Ton Kilometers(ATK), the number of employees are used as input factors, Revenue Passenger Kilometers(RPK), Revenue Ton Kilometers(RTK), the amount of Sales are used as output factors. The non-radial SBM-DEA (Slacks-based Measure of Efficiency) model was able to provide a more comprehensive efficiency of combining economic performance and regional difference. And it was also able to capture slack values in input excess and output shortage. The results demonstrate that Korea and Japan airlines are operated efficiently and could be regarded as the benchmarking airlines. On the other hand, most of the China and ASEAN airlines are deemed to be inefficient. Also analyzing slacks may be more suitable way for the evaluation or suggestion of an improvement scheme for the inefficient airlines. The excess of labor is the major cause of the airlines’ inefficiency.

Comparative Analysis of Operational Efficiency of Major Airlines in Asia-Pacific Region

This paper uses various Data Envelopment Analysis (SBM-DEA) approaches to study the efficiency of major airlines in Asia-Pacific region. To evaluate the operation efficiency of fourteen major airlines in Asia-Pacific region from 2003-2011, Available Seat Kilometers(ASK), Available Ton Kilometers(ATK), the number of employees are used as input factors, Revenue Passenger Kilometers(RPK), Revenue Ton Kilometers(RTK), the amount of Sales are used as output factors. The non-radial SBM-DEA (Slacks-based Measure of Efficiency) model was able to provide a more comprehensive efficiency of combining economic performance and regional difference. And it was also able to capture slack values in input excess and output shortage. The results demonstrate that Korea and Japan airlines are operated efficiently and could be regarded as the benchmarking airlines. On the other hand, most of the China and ASEAN airlines are deemed to be inefficient. Also analyzing slacks may be more suitable way for the evaluation or suggestion of an improvement scheme for the inefficient airlines. The excess of labor is the major cause of the airlines’ inefficiency.

An analysis of African airlines efficiency with two-stage TOPSIS and neural networks

This paper presents an efficiency assessment of African airlines, using the TOPSIS – Technique for Order Preference by Similarity to the Ideal Solution. TOPSIS is a multi-criteria decision making technique, which similar to DEA (Data Envelopment Analysis), ranks a finite set of units based on the minimisation of distance from an ideal point, and the maximisation of distance from an anti-ideal point. In this research, TOPSIS is used first in a two-stage approach, in order to assess the relative efficiency of African airlines using the most frequent indicators adopted by the literature on airlines. During the second stage, neural networks are combined with TOPSIS results, as part of an attempt to produce a model for airline performance which has effective predictive ability. The results reveal that network size-related variables – economies of scope, are the most important variables for explaining levels of efficiency in the African airline industry, although the impact of fleet mix and public ownership cannot be neglected.

Evaluating energy efficiency for airlines: An application of VFB-DEA

In this paper, the energy efficiency of airlines has been studied with number of employees, capital stock and tons of aviation kerosene as the inputs and Revenue Ton Kilometers, Revenue Passenger Kilometers, total business income and CO2 emissions decrease index as the outputs. A new model, Virtual Frontier Benevolent DEA Cross Efficiency model (VFB-DEA), is proposed to calculate the energy efficiencies of 11 airlines from 2008 to 2012. Spearman correlation coefficient is applied to validate the applicability of the new model. The results indicate that capital efficiency is an important factor in driving energy efficiency, and the American financial crisis had a significant influence on the change in energy efficiency during this period.

The change trend and influencing factors of civil aviation safety efficiency: The case of Chinese airline companies

While the issue of civil aviation safety has attracted serious public concern, notably few studies have investigated civil aviation safety efficiency. In this paper, a definition of civil aviation safety efficiency is proposed for the first time. Inputs to the proposed civil aviation safety efficiency model are labor, capital, fund and technology. The outputs are the percent of the passenger turnover volume without accidents or incidents to the total passenger turnover volume and Net profit rate. Data Envelopment Analysis (DEA) and Malmquist index are used to calculate the civil aviation safety efficiency of ten Chinese airline companies from 2008 to 2012, and the Panel Regression Model is used to identify the important influencing factors of civil aviation safety efficiency. The results indicate that technology development is not the most important factor affecting the civil aviation safety efficiency of Chinese airlines. Instead, the most important factor is investments in training and developing aviation security staff and airline pilots. The research conclusions could provide guidance for decision makers on civil aviation safety.

Efficiency of airlines: Hub and SpokeversusPoint-to-Point

Purpose – The purpose of this paper is to study the efficiency and financial situation of Spanish airlines by conducting a comparative analysis of those operating in hubs and those that employ the point-to-point system. Design/methodology/approach – Data envelopment analysis and accounting rates are implemented to do so. Findings – The results show that hubs do not result in the companies that use them being efficient. Instead, it is the charter, low-cost and private flight operators that best manage their resources. Originality/value – The study makes a novel contribution to the literature, as there has been no research on Spanish airlines that compares the two types of operators (hubs and point to point).

Assessment of U.S. Domestic Airline Fuel Efficiency since 2010

Aircraft are responsible for about 2.5% of anthropogenic carbon dioxide (CO2) emissions globally. Total aircraft CO2 emissions are expected to triple by 2050 if present trends continue. Surprisingly little public information is available about the fuel efficiency, and therefore carbon intensity, of U.S. airlines. This research seeks to address this gap by assessing the fuel efficiency of major airlines serving the U.S. domestic market from 2010 to 2012 by using airline-reported fuel and operations data. A frontier model was used to develop an efficiency metric that accounts for the fuel that airlines burn to provide both mobility (passenger miles traveled) and access (frequency of service and number of airports served). Recognizing that many main-line carriers receive service from their regional partners, the fuel efficiency assessment incorporates the fuel and operations of regional carriers into the fuel and operations of their respective main-line carriers. Airlines that operate circuitous routes are also distinguished. Alaska, Spirit, and Southwest were among the most fuel-efficient airlines, in contrast to less-efficient carriers such as Allegiant and American, which consumed an estimated 26% more fuel than Alaska on equivalent operations in 2012. Airlines that were the most efficient overall did not necessarily transport a given passenger more efficiently between each city–city pair, because of differences in technology utilization and operations. From 2010 to 2012, the average rate of improvement was estimated to be 1.1% per year, short of existing climate protection goals, highlighting the importance of continued efforts in both technology and policy to reduce emissions from aviation.

Productivity efficiency analysis of the airlines in China after deregulation

Using data envelopment analysis and the Malmquist productivity index, this paper studies productivity efficiency of various airlines in China after the Chinese government deregulated the aviation industry in 2005. The results show that the productivity efficiency of non-state-owned airlines improves rapidly and eventually exceeds state-owned airlines after the deregulation policy. Among the state-owned airlines, the productivity of the local airlines and their technical changes are better than those of the central airlines.