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Productivity of airline carriers and its relation to deregulation, privatisation and membership in strategic alliances

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  • Sjögren, Stefan
  • Söderberg, Magnus

Abstract

This study looks at how deregulation, privatisation and the formation of strategic alliances have affected the productivity of international airlines. We evaluate all three factors simultaneously and disaggregate the carriers' operations into production and sales and allow for unobserved firm-level heterogeneity through random parameters. Estimations of stochastic frontier models reveal that on the aggregate level, deregulation increases productivity, membership in alliances has an ambiguous effect and state ownership has no significant effect. Disaggregating the carriers' operations confirms the productivity gains from deregulation, and that state ownership and alliances have contradictory effects.

Suggested Citation

  • Sjögren, Stefan & Söderberg, Magnus, 2011. "Productivity of airline carriers and its relation to deregulation, privatisation and membership in strategic alliances," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(2), pages 228-237, March.
    • Handle: RePEc:eee:transe:v:47:y:2011:i:2:p:228-237
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    Cited by:

    1. Dettmer, Bianka & Freytag, Andreas & Draper, Peter, 2014. "Air Cargo beyond Trade Barriers in Africa," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 29, pages 95-138.
    2. Min, Hokey & Joo, Seong-Jong, 2016. "A comparative performance analysis of airline strategic alliances using data envelopment analysis," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 99-110.
    3. Bianka Dettmer & Andreas Freytag & Peter Draper, 2013. "Check-in, departure and arrival times: Air cargo in Southern Africa?," Jena Economics Research Papers 2013-018, Friedrich-Schiller-University Jena.
    4. Liu, Wei & Gao, Lixiang & Song, Hang & Huang, Mingdong, 2021. "Factor market distortion, technology change, and green growth in the Chinese civil airline industry," Journal of Asian Economics, Elsevier, vol. 77(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. 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 & 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.
    8. See, Kok Fong & Rashid, Azwan Abdul & Yu, Ming-Miin, 2024. "Measuring the network capacity utilization, energy consumption and environmental inefficiency of global airlines," Energy Economics, Elsevier, vol. 132(C).
    9. 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.
    10. 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.
    11. Barros, Carlos P. & Liang, Qi Bin & Peypoch, Nicolas, 2013. "The technical efficiency of US Airlines," Transportation Research Part A: Policy and Practice, Elsevier, vol. 50(C), pages 139-148.

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