Comparative Analysis of Operational Efficiency of Major Airlines in Asia-Pacific Region

Zhen Gong (Graduate School of Logistics, Inha University, 100 Inha-ro, Nam-gu, Incheon, Korea)
Tae Seung Kim (Graduate School of Logistics, Inha University, 100 Inha-ro, Nam-gu, Incheon, Korea) *

Journal of International Logistics and Trade

ISSN: 1738-2122

Article publication date: 30 April 2015

Issue publication date: 30 April 2015

519
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Abstract

This paper uses various Data Envelopment Analysis (SBM-DEA) approaches to study the efficiency of major airlines in Asia-Pacific region. To evaluate the operation efficiency of fourteen major airlines in Asia-Pacific region from 2003-2011, Available Seat Kilometers(ASK), Available Ton Kilometers(ATK), the number of employees are used as input factors, Revenue Passenger Kilometers(RPK), Revenue Ton Kilometers(RTK), the amount of Sales are used as output factors.

The non-radial SBM-DEA (Slacks-based Measure of Efficiency) model was able to provide a more comprehensive efficiency of combining economic performance and regional difference. And it was also able to capture slack values in input excess and output shortage.

The results demonstrate that Korea and Japan airlines are operated efficiently and could be regarded as the benchmarking airlines. On the other hand, most of the China and ASEAN airlines are deemed to be inefficient. Also analyzing slacks may be more suitable way for the evaluation or suggestion of an improvement scheme for the inefficient airlines. The excess of labor is the major cause of the airlines’ inefficiency.

Keywords

Citation

Gong, Z. and Kim, T.S. (2015), "Comparative Analysis of Operational Efficiency of Major Airlines in Asia-Pacific Region", Journal of International Logistics and Trade, Vol. 13 No. 1, pp. 3-30. https://doi.org/10.24006/jilt.2015.13.1.3

Publisher

:

Emerald Publishing Limited

Copyright © 2015 Jungseok Research Institute of International Logistics and Trade

License

This is an Open-Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited


Corresponding author

*Corresponding author: Associate Professor, Graduate School of Logistics, Inha University, 100 Inha-ro, Nam-gu, Incheon, Korea, E-mail:

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