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Evaluating airline efficiency: An application of Virtual Frontier Network SBM

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  • Li, Ye
  • Wang, Yan-zhang
  • Cui, Qiang

Abstract

In this paper, airline efficiency is divided into three stages: Operations Stage, Services Stage and Sales Stage. The new three-stage strategic operating framework of airline efficiency is a modification of existing models. A new model, Virtual Frontier Network SBM, is proposed to evaluate the efficiency of 22 international airlines from 2008 to 2012. The results demonstrate the following: 1. The new model can apply to a new benchmarking airline such as Scandinavian Airlines. 2. Although passenger traffic, cargo traffic and revenue decreased from 2008 to 2009, most airlines’ overall efficiency increased in the period.

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  • Li, Ye & Wang, Yan-zhang & Cui, Qiang, 2015. "Evaluating airline efficiency: An application of Virtual Frontier Network SBM," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 1-17.
    • Handle: RePEc:eee:transe:v:81:y:2015:i:c:p:1-17
    DOI: 10.1016/j.tre.2015.06.006
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