How do airlines survive? An integrated efficiency analysis on the survival of airlines

Gizem Kaya, Umut Aydın, Burç Ülengin, Melis Almula Karadayı, Füsun Ülengin*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

Airline managers must prepare effective strategies to cope with fluctuations and enhance the performance and competitiveness of their companies. Airline performance evaluation also requires a multidimensional perspective that focuses on both financial and nonfinancial indicators. In this study; a two-stage super-efficiency data envelopment analysis (DEA) was used to better understand the sources of inefficiency, and an enhanced performance evaluation from five different dimensions was conducted by integrating the sustainability balanced scorecard and two-stage DEA approaches. The results indicated that Aeromexico and Icelandair had the highest efficiency scores among the 35 airlines, and they were labeled as efficient with respect to the customer, finance, internal process, learning and growth, and environmental dimensions of the SBSC. Finally; a regression analysis based on the Simar–Wilson method shows that an increase in the number of wide-body aircraft and return on assets negatively affects efficiency, net carrier airlines are more efficient than low-cost airlines, and airlines that are not members of any alliance are more efficient.

Original languageEnglish
Article number102348
JournalJournal of Air Transport Management
Volume107
DOIs
Publication statusPublished - Mar 2023

Bibliographical note

Publisher Copyright:
© 2022 Elsevier Ltd

Keywords

  • Airline efficiency
  • Simar–Wilson analysis
  • Sustainability balanced scorecard
  • Two-stage DEA

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