IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v54y2016icp42-46.html
   My bibliography  Save this article

Performance assessment of airlines using range-adjusted measure, strong complementary slackness condition, and discriminant analysis

Author

Listed:
  • Tavassoli, Mohammad
  • Badizadeh, Taliva
  • Farzipoor Saen, Reza

Abstract

This study integrates RAM (range-adjusted measure), SCSC (strong complementary slackness condition), and DEA–DA (data envelopment analysis–discriminant analysis) to rank airlines. As conventional DEA models do not fully use all inputs and outputs, they result zero in many multipliers. These sorts of DEA models may yield many efficient decision-making units (DMUs). This decreases the discrimination power of DEA. To overcome this limitation, this study proposes a novel application of RAM–DEA/SCSC along with DA. A case study demonstrates the applicability of our proposed approach.

Suggested Citation

  • Tavassoli, Mohammad & Badizadeh, Taliva & Farzipoor Saen, Reza, 2016. "Performance assessment of airlines using range-adjusted measure, strong complementary slackness condition, and discriminant analysis," Journal of Air Transport Management, Elsevier, vol. 54(C), pages 42-46.
    • Handle: RePEc:eee:jaitra:v:54:y:2016:i:c:p:42-46
    DOI: 10.1016/j.jairtraman.2016.02.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699716300436
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2016.02.014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Reza Farzipoor Saen, 2013. "Using cluster analysis and DEA-discriminant analysis to predict group membership of new customers," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 6(3), pages 348-360.
    2. Sueyoshi, Toshiyuki & Sekitani, Kazuyuki, 2007. "Measurement of returns to scale using a non-radial DEA model: A range-adjusted measure approach," European Journal of Operational Research, Elsevier, vol. 176(3), pages 1918-1946, February.
    3. William Cooper & Kyung Park & Jesus Pastor, 1999. "RAM: A Range Adjusted Measure of Inefficiency for Use with Additive Models, and Relations to Other Models and Measures in DEA," Journal of Productivity Analysis, Springer, vol. 11(1), pages 5-42, February.
    4. Rico Merkert & James Pearson, 2015. "A Non-parametric Efficiency Measure Incorporating Perceived Airline Service Levels and Profitability," Journal of Transport Economics and Policy, University of Bath, vol. 49(2), pages 261-275, April.
    5. Sueyoshi, Toshiyuki, 1999. "DEA-discriminant analysis in the view of goal programming," European Journal of Operational Research, Elsevier, vol. 115(3), pages 564-582, June.
    6. Barros, Carlos Pestana & Wanke, Peter, 2015. "An analysis of African airlines efficiency with two-stage TOPSIS and neural networks," Journal of Air Transport Management, Elsevier, vol. 44, pages 90-102.
    7. Wanke, Peter & Pestana Barros, Carlos & Chen, Zhongfei, 2015. "An analysis of Asian airlines efficiency with two-stage TOPSIS and MCMC generalized linear mixed models," International Journal of Production Economics, Elsevier, vol. 169(C), pages 110-126.
    8. Sueyoshi, Toshiyuki & Goto, Mika, 2011. "Measurement of Returns to Scale and Damages to Scale for DEA-based operational and environmental assessment: How to manage desirable (good) and undesirable (bad) outputs?," European Journal of Operational Research, Elsevier, vol. 211(1), pages 76-89, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen Chunhua & Liu Haohua & Tang Lijun & Ren Jianwei, 2021. "A Range Adjusted Measure of Super-Efficiency in Integer-Valued Data Envelopment Analysis with Undesirable Outputs," Journal of Systems Science and Information, De Gruyter, vol. 9(4), pages 378-398, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wanke, Peter & Barros, C.P., 2016. "Efficiency in Latin American airlines: A two-stage approach combining Virtual Frontier Dynamic DEA and Simplex Regression," Journal of Air Transport Management, Elsevier, vol. 54(C), pages 93-103.
    2. Saranga, Haritha & Nagpal, Rajiv, 2016. "Drivers of operational efficiency and its impact on market performance in the Indian Airline industry," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 165-176.
    3. Chen, Zhongfei & Tzeremes, Panayiotis & Tzeremes, Nickolaos G., 2018. "Convergence in the Chinese airline industry: A Malmquist productivity analysis," Journal of Air Transport Management, Elsevier, vol. 73(C), pages 77-86.
    4. Kaya, Gizem & Aydın, Umut & Ülengin, Burç & Karadayı, Melis Almula & Ülengin, Füsun, 2023. "How do airlines survive? An integrated efficiency analysis on the survival of airlines," Journal of Air Transport Management, Elsevier, vol. 107(C).
    5. Mahmut BAKIR & Şahap AKAN & Kasım KIRACI & Darjan KARABASEVIC & Dragisa STANUJKIC & Gabrijela POPOVIC, 2020. "Multiple-Criteria Approach of the Operational Performance Evaluation in the Airline Industry: Evidence from the Emerging Markets," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 149-172, July.
    6. Tianqun Xu & Ping Gao & Qian Yu & Debin Fang, 2017. "An Improved Eco-Efficiency Analysis Framework Based on Slacks-Based Measure Method," Sustainability, MDPI, vol. 9(6), pages 1-21, June.
    7. Ke Wang & Xueying Yu, 2017. "Industrial Energy and Environment Efficiency of Chinese Cities: An Analysis Based on Range-Adjusted Measure," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1023-1042, July.
    8. Ying Li & Tai‐Yu Lin & Yung‐ho Chiu & Shu‐Ning Lin & Tzu‐Han Chang, 2021. "Impact of alliances and delay rate on airline performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1607-1618, September.
    9. Das, Deepjyoti & Sharma, Somesh Kumar & Parti, Raman & Singh, Jagroop, 2016. "Analyzing the effect of aviation infrastructure over aviation fuel consumption reduction," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 89-100.
    10. Barros, C.P. & Wanke, Peter & Dumbo, Silvestre & Manso, Jose Pires, 2017. "Efficiency in angolan hydro-electric power station: A two-stage virtual frontier dynamic DEA and simplex regression approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 588-596.
    11. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "Returns to Scale, Damages to Scale, Marginal Rate of Transformation and Rate of Substitution in DEA Environmental Assessment," Energy Economics, Elsevier, vol. 34(4), pages 905-917.
    12. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "DEA radial and non-radial models for unified efficiency under natural and managerial disposability: Theoretical extension by strong complementary slackness conditions," Energy Economics, Elsevier, vol. 34(3), pages 700-713.
    13. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "Returns to scale and damages to scale on U.S. fossil fuel power plants: Radial and non-radial approaches for DEA environmental assessment," Energy Economics, Elsevier, vol. 34(6), pages 2240-2259.
    14. Cui, Qiang & Arjomandi, Amir, 2021. "Airline energy efficiency measures based on an epsilon-based Range-Adjusted Measure model," Energy, Elsevier, vol. 217(C).
    15. Cui, Qiang & Li, Ye, 2017. "Airline efficiency measures under CNG2020 strategy: An application of a Dynamic By-production model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 130-143.
    16. Singh, Jagroop & Sharma, Somesh Kumar & Srivastava, Rajnish, 2019. "What drives Indian Airlines operational expense: An econometric model," Journal of Air Transport Management, Elsevier, vol. 77(C), pages 32-38.
    17. Premachandra, I.M. & Bhabra, Gurmeet Singh & Sueyoshi, Toshiyuki, 2009. "DEA as a tool for bankruptcy assessment: A comparative study with logistic regression technique," European Journal of Operational Research, Elsevier, vol. 193(2), pages 412-424, March.
    18. Deveci, Muhammet & Demirel, Nihan Çetin & Ahmetoğlu, Emine, 2017. "Airline new route selection based on interval type-2 fuzzy MCDM: A case study of new route between Turkey- North American region destinations," Journal of Air Transport Management, Elsevier, vol. 59(C), pages 83-99.
    19. Chen, Zhongfei & Wanke, Peter & Antunes, Jorge Junio Moreira & Zhang, Ning, 2017. "Chinese airline efficiency under CO2 emissions and flight delays: A stochastic network DEA model," Energy Economics, Elsevier, vol. 68(C), pages 89-108.
    20. Sueyoshi, Toshiyuki, 2001. "Extended DEA-Discriminant Analysis," European Journal of Operational Research, Elsevier, vol. 131(2), pages 324-351, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:54:y:2016:i:c:p:42-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.