IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v48y2016i52p5106-5116.html
   My bibliography  Save this article

Productivity comparison of European airlines: bootstrapping Malmquist indices

Author

Listed:
  • Chyan Yang
  • Tung-Pao Wang

Abstract

The study explored the operating efficiency and variability of productivity estimates of European airlines. We applied Malmquist productivity indices (MPI) with a bootstrap method to assess the productivities of European airlines in four regions in Europe. The productivity of small-sized airlines lagged further behind that of large-sized airlines because of their inferior technological change (TC) effects derived from inefficient resource allocation to sustain a competitive advantage. This study also indicated that the Western European airlines were more efficient on average than those in other areas of Europe. The applications of Malmquist productivity techniques in assessing the performance of European airlines are highlighted in their effective resource allocation, sustained competitive advantage and optimized operating performance.

Suggested Citation

  • Chyan Yang & Tung-Pao Wang, 2016. "Productivity comparison of European airlines: bootstrapping Malmquist indices," Applied Economics, Taylor & Francis Journals, vol. 48(52), pages 5106-5116, November.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5106-5116
    DOI: 10.1080/00036846.2016.1170937
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2016.1170937
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2016.1170937?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. Leopold Simar & Paul Wilson, 2000. "A general methodology for bootstrapping in non-parametric frontier models," Journal of Applied Statistics, Taylor & Francis Journals, vol. 27(6), pages 779-802.
    2. Wang, Tung-Pao & Shyu, Stacy Huey-Pyng & Chou, Han-Chung, 2012. "The impact of defense expenditure on economic productivity in OECD countries," Economic Modelling, Elsevier, vol. 29(6), pages 2104-2114.
    3. 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.
    4. Barbot, Cristina & Costa, Ã lvaro & Sochirca, Elena, 2008. "Airlines performance in the new market context: A comparative productivity and efficiency analysis," Journal of Air Transport Management, Elsevier, vol. 14(5), pages 270-274.
    5. Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
    6. Barros, Carlos Pestana & Peypoch, Nicolas, 2009. "An evaluation of European airlines' operational performance," International Journal of Production Economics, Elsevier, vol. 122(2), pages 525-533, December.
    7. Bernhard Brümmer, 2001. "Estimating confidence intervals for technical efficiency: the case of private farms in slovenia," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(3), pages 285-306, October.
    8. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    9. Arjomandi, Amir & Seufert, Juergen Heinz, 2014. "An evaluation of the world's major airlines' technical and environmental performance," Economic Modelling, Elsevier, vol. 41(C), pages 133-144.
    10. A. Assaf, 2011. "A fresh look at the productivity and efficiency changes of UK airlines," Applied Economics, Taylor & Francis Journals, vol. 43(17), pages 2165-2175.
    11. Wang, Wei-Kang & Lu, Wen-Min & Tsai, Chia-Jen, 2011. "The relationship between airline performance and corporate governance amongst US Listed companies," Journal of Air Transport Management, Elsevier, vol. 17(2), pages 148-152.
    12. Barros, Carlos Pestana & Couto, Eduardo, 2013. "Productivity analysis of European airlines, 2000–2011," Journal of Air Transport Management, Elsevier, vol. 31(C), pages 11-13.
    13. Dyson, R. G. & Allen, R. & Camanho, A. S. & Podinovski, V. V. & Sarrico, C. S. & Shale, E. A., 2001. "Pitfalls and protocols in DEA," European Journal of Operational Research, Elsevier, vol. 132(2), pages 245-259, July.
    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. Seufert, Juergen Heinz & Arjomandi, Amir & Dakpo, K. Hervé, 2017. "Evaluating airline operational performance: A Luenberger-Hicks-Moorsteen productivity indicator," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 52-68.
    2. Dong‐Sing He & Imen Tebourbi, 2021. "Measuring the continuation effects of market order entry: A dynamic model," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 762-777, April.
    3. Losa, Eduardo Tola & Arjomandi, Amir & Hervé Dakpo, K. & Bloomfield, Jason, 2020. "Efficiency comparison of airline groups in Annex 1 and non-Annex 1 countries: A dynamic network DEA approach," Transport Policy, Elsevier, vol. 99(C), pages 163-174.
    4. Zhang, Lina & Gao, Wanting & Chiu, Yung-ho & Pang, Qinghua & Shi, Zhen & Guo, Zhiqin, 2021. "Environmental performance indicators of China's coal mining industry: A bootstrapping Malmquist index analysis," Resources Policy, Elsevier, vol. 71(C).
    5. Yu, Ming-Miin & Chen, Li-Hsueh, 2023. "Productivity change of airlines: A global total factor productivity index with network structure," Journal of Air Transport Management, Elsevier, vol. 109(C).
    6. Yen, Barbara T.H. & Li, Jun-Sheng, 2022. "Route-based performance evaluation for airlines – A metafrontier data envelopment analysis approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 162(C).

    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. 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.
    2. Seufert, Juergen Heinz & Arjomandi, Amir & Dakpo, K. Hervé, 2017. "Evaluating airline operational performance: A Luenberger-Hicks-Moorsteen productivity indicator," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 52-68.
    3. Choi, Kanghwa, 2017. "Multi-period efficiency and productivity changes in US domestic airlines," Journal of Air Transport Management, Elsevier, vol. 59(C), pages 18-25.
    4. Yu, Ming-Miin & Chang, Yu-Chun & Chen, Li-Hsueh, 2016. "Measurement of airlines’ capacity utilization and cost gap: Evidence from low-cost carriers," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 186-198.
    5. Kottas, Angelos T. & Madas, Michael A., 2018. "Comparative efficiency analysis of major international airlines using Data Envelopment Analysis: Exploring effects of alliance membership and other operational efficiency determinants," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 1-17.
    6. Ye Li & Qiang Cui, 2017. "Airline energy efficiency measures using the Virtual Frontier Network RAM with weak disposability," Transportation Planning and Technology, Taylor & Francis Journals, vol. 40(4), pages 479-504, May.
    7. Li, Ye & Wang, Yan-zhang & Cui, Qiang, 2016. "Has airline efficiency affected by the inclusion of aviation into European Union Emission Trading Scheme? Evidences from 22 airlines during 2008–2012," Energy, Elsevier, vol. 96(C), pages 8-22.
    8. Cui, Qiang & Li, Ye & Yu, Chen-lu & Wei, Yi-Ming, 2016. "Evaluating energy efficiency for airlines: An application of Virtual Frontier Dynamic Slacks Based Measure," Energy, Elsevier, vol. 113(C), pages 1231-1240.
    9. 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.
    10. Yu, Ming-Miin & Chen, Li-Hsueh & Chiang, Hui, 2017. "The effects of alliances and size on airlines’ dynamic operational performance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 197-214.
    11. 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.
    12. Arjomandi, Amir & Seufert, Juergen Heinz, 2014. "An evaluation of the world's major airlines' technical and environmental performance," Economic Modelling, Elsevier, vol. 41(C), pages 133-144.
    13. Boon Liat Lee & Clevo Wilson & Carl A. Pasurka & Hidemichi Fujii & Shunsuke Managi, 2017. "Sources of airline productivity from carbon emissions: an analysis of operational performance under good and bad outputs," Journal of Productivity Analysis, Springer, vol. 47(3), pages 223-246, June.
    14. 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.
    15. 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.
    16. George E. Halkos & Nickolaos G. Tzeremes, 2015. "Measuring Seaports' Productivity: A Malmquist Productivity Index Decomposition Approach," Journal of Transport Economics and Policy, University of Bath, vol. 49(2), pages 355-376, April.
    17. Huang, Fei & Zhou, Dequn & Hu, Jin-Li & Wang, Qunwei, 2020. "Integrated airline productivity performance evaluation with CO2 emissions and flight delays," Journal of Air Transport Management, Elsevier, vol. 84(C).
    18. Chen, Fu-Chiang & Liu, Z.-John & Kweh, Qian Long, 2014. "Intellectual capital and productivity of Malaysian general insurers," Economic Modelling, Elsevier, vol. 36(C), pages 413-420.
    19. Arjomandi, Amir & Dakpo, K. Hervé & Seufert, Juergen Heinz, 2018. "Have Asian airlines caught up with European Airlines? A by-production efficiency analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 389-403.
    20. 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.

    More about this item

    Statistics

    Access and download statistics

    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:taf:applec:v:48:y:2016:i:52:p:5106-5116. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    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.