Assessing The Impact of Airlines' Strategic Decisions in Fleet Planning on Profitability by Implementing Panel Data Analysis

Abstract

This study investigates the impact on airline profitability of different types of aircraft that airlines choose as a strategic decision for their flight operations. Dataset were gathered from MIT Airline Data Project for ten airlines operating in the USA for five-year period between 2015-2019. Three different panel data models- Pooled, Fixed Effects, and Random Effects- were employed to examine the effects of aircraft types (small narrow-body, large narrow-body, and wide-body) on profitability. Plm package of R language was used to create panel data models. As a conclusion, Fixed Effects Panel Data Model proved to be the most successful in explaining profit variation in all dataset. Variables determining airline profits change according to the airline specifications and are not time-dependent.

Keywords

• Airline
• profitability
• aircraft type
• strategic management
• strategy
• panel data model

Assessing The Impact of Airlines' Strategic Decisions in Fleet Planning on Profitability by Implementing Panel Data Analysis

Abstract

Bu çalışma, havayolu şirketlerinin uçuş operasyonları için stratejik bir karar olarak seçtikleri farklı uçak tiplerinin havayolu karlılığı üzerindeki etkisini araştırmaktadır. Veri setleri, 2015-2019 yılları arasındaki beş yıllık dönem için ABD'de faaliyet gösteren on havayolu şirketi için MIT Havayolu Veri Projesi'nden toplanmıştır. Uçak tiplerinin (küçük dar gövdeli, büyük dar gövdeli ve geniş gövdeli) kârlılık üzerindeki etkilerini incelemek için Havuzlanmış, Sabit Etkiler ve Rassal Etkiler olmak üzere üç farklı panel veri modeli kullanılmıştır. Panel veri modellerini oluşturmak için R dilinin plm paketi kullanılmıştır. Sonuç olarak, Sabit Etkiler Panel Veri Modeli, tüm veri setlerinde kâr değişkenliğini açıklamada en başarılı model olarak ortaya çıkmıştır. Havayolu karlarını belirleyen değişkenler havayolu özelliklerine göre değişmektedir ve zamana bağlı değildir.

Keywords

• Havayolu
• karlılık
• uçak tipi
• stratejik yönetim
• strateji
• panel veri modeli

References

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