ANALYZING EFFICIENCIES AND TOTAL FACTOR PRODUCTIVITIES OF STAR ALLIANCE MEMBER AIRLINES

Abstract

Comparing the efficiency levels and productivities of domestic and international airline companies is an active research area in services sector and has lots of interests in business administration field. In this study, Data Envelopment Analysis and Total Factor Productivity Analysis are used to compare the efficiencies and productivities of Star Alliance member international airline companies. Eight variables, including both inputs and outputs named as Number of Annual Passengers, Daily Departures, Number of Countries Served, Number of Airports Served, Revenue Passenger (Km), Sales Revenue ($), Number of Employees and Fleet of 26 airline companies are taken place in analysis for the years 2013 and 2014. Because of price differences in access the resources of services and goods that the companies used, the Variable Returns to Scale Method of Data Envelopment Analysis is used instead of Constant Returns to Scale Method to figure out efficiencies in years. Results show that there are differences in efficiencies and productivities of airline companies by the means of using their inputs to produce outputs while some of them are wasting their resource and some others are not

Keywords

• Airlines, Total Factor

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