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Finding groups of similarly performing organizations for strategic or tactical performance comparison has typically been done by either cluster or frontier analysis. Both present problems of definition and interpretation. Given the inevitable abstraction of any model it is desirable that as much as possible of the model specification be in easily understood language and that, where appropriate, the ambiguity of the model is recognised by giving a number of equally good solutions. The purpose of this paper is to describe a model which balances what is judged and what is calculated in a way different to that usual in performance analysis.

Two linked optimisations find the minimum number of groups and the distribution of group sizes which identifies large groups, if they exist. A number of alternative optimal solutions are generated and must be considered in the final synthesis. The method is illustrated by finding performance groups among 35 international airports.

In total, 16 alternative optimal solutions, each of 12 groups, are found. Two thirds of the airports were found in the same groups in all solutions, forming the robust core. Of the remainder, a solution was chosen and justified on the grounds of similarity of country and jurisdiction.

The model changes the focus of analysis from one of reacting to apparent patterns in the result of an analysis to one in which careful thought is given about the definitions of group which reflect the point of view of the user.

The paper illustrates how a novel methodology forms a decision aid for finding performance groups in which due scope is given for the interpretation of equally good solutions.

The purpose of this paper is to examine the efficacy of diversification-based learning (DBL) in expediting the performance of simulated annealing (SA) in hub location problems.

This study proposes a novel diversification-based learning simulated annealing (DBLSA) algorithm for solving p-hub median problems. It is executed on MATLAB 11.0. Experiments are conducted on CAB and AP data sets.

This study finds that in hub location models, DBLSA algorithm equipped with social learning operator outperforms the vanilla version of SA algorithm in terms of accuracy and convergence rates.

Hub location problems are relevant in aviation and telecommunication industry. This study proposes a novel application of a DBLSA algorithm to solve larger instances of hub location problems effectively in reasonable computational time.

To the best of the author’s knowledge, this is the first application of DBL in optimisation. By demonstrating its efficacy, this study steers research in the direction of learning mechanisms-based metaheuristic applications.

The purpose of this paper is to present an objective decision-making framework and conduct a benchmarking study in the air cargo industry.

The decision-making framework and benchmarking methodology evaluates the aircraft value for money (VfM) as a benefit-to-cost ratio calculated adopting a measure of relative efficiency. This efficiency score is measured as a comprehensive efficiency index obtained by combining several efficiency scores calculated by implementing four data envelopment analysis (DEA) models.

The framework is used to carry on a benchmarking study in the air cargo industry on a sample of 27 airplanes. The average VfM is 67.04 percent, with measurements between 39.96 and 116.03 percent. Only three airplanes achieve full VfM and behave as benchmarks to the remaining airplanes. Boeing B727-200 is a broad player in the market. Some old cargo models (DC 9-30F) deliver the same amount of VfM as more recent aircraft models (i.e. MD-11F and A300-600F).

The decision-making framework and benchmarking methodology can usefully support managers to make sound decisions and plans. Even though DEA generates attributes weights to different alternatives that are independent of the buyer preferences, the framework flexibility allows introducing a weighting scheme to take into account the managers preferences for certain aircraft performance/functional features. It can easily include new functional/performance measurements and adapt the VfM measurement to the particular economic context, strategy, and business model of the airlines, or be transferred to different industries.

The framework combines technical, functional performance, and economic cost measurements to get a unique efficiency index to evaluate the airplane VfM.

The purpose of this paper is to explore the process benefits and findings of a functional benchmarking exercise. It explores the issues surrounding the potential introduction of a direct employee car parking financial incentive or disincentive measure at an airport, drawing on best practice from specific non‐airport organisations.

A case study approach is taken in which three different organisations are considered from a functional benchmarking perspective.

There are direct findings in terms of how to develop employee parking strategies/policies.

This paper adds to the practical literature on functional benchmarking by presenting evidence from a benchmarking exercise of three case study organisations.

There are practical findings in terms of the potential benefits and limitations from a functional benchmarking exercise. There are also practical recommendations in terms of organisations seeking to develop and implement staff car parking strategies.

The paper provides an illustration of functional benchmarking in practice.

Choosing the right pricing strategy is a complex decision, even though it is fundamental for transport companies whose activities are very diverse and subject to strong stochastic fluctuations. However, in spite of its complexity, adequate pricing can be a very relevant instrument to ensure the competitive position of the company.

European airlines are competing for the same passengers, often with different strategies and, as a consequence, with different financial results at the end of the fiscal year. The use of different pricing strategies is one of the potential explanations. This brings us to the research question of this chapter: How can air pricing strategies be used to support strategic aims, and what are the consequences?

This chapter first deals with the state of the art in air pricing strategies, followed by an analysis of the relationship between airline pricing, yields and profit. The focus then moves to a case study at Brussels Airport over the period 2012–2017. Following the entry of Vueling and Ryanair at Brussels Airport, the incumbent Brussels Airlines launched a very aggressive pricing war against the two newcomers. The result was a partial withdrawal by Vueling and Easyjet and an end to Ryanair’s expansion at Brussels Airport. Even without access to confidential detailed data, one can learn a lot from the reconstruction of the consecutive management decisions by the airlines involved.

The purpose of this paper is to provide a comprehensive overview of the literature related to performance measurement (PM) in airport settings. Two research questions were addressed: how the literature has evolved during the last 45 years; and which performance dimensions have been emphasized during this period.

For the purpose of this study, 380 documents, published between 1970 and 2015 were systematically analyzed. The literature reviewed comprises academic peer-reviewed articles, and studies published by other relevant sources, including professional-related literature.

The literature reviewed points to three stages relating to the evolution of the PM in airport settings during the period analyzed. Although with a significant lag, this evolution seems to have followed the broad literature on PM. Moreover, a relationship between these stages and the changes occurring at the airport industry was found. Several aspects of airport multidimensional performance are identified and discussed.

Based on the findings of this study, it is concluded that a more comprehensive approach to airport PM is needed. In this context, a research agenda is suggested.

The findings of this study have relevant practical implications for the airport industry. In this context, a framework representing a comprehensive approach to airport performance dimensions with impact on external stakeholders is presented. This framework can be a relevant contribution for researchers and practitioners which are looking for a more comprehensive and multidimensional approach to airport PM.

To the best of the authors’ knowledge, this study appears to be the first to examine the literature related to airport PM according to such a comprehensive approach. A framework of the performance dimensions related to the airport business is provided.

The aim of the paper is to provide a framework for benchmarking firm performance (profitability) using panel data. Further, to illustrate how the estimation results can be used for simulation (what if?) exercises.

The authors apply the econometric techniques used in panel data to estimate profit functions, thereby enabling us to compute measures of firm efficiencies which can subsequently be used as benchmarking tools.

The results suggest that both large firms and those highly specialised, enjoy higher profit margins, whereas the more capital intensive a firm is, the lower is its profitability. As with previous studies there is strong evidence of the U‐shaped relationship between market share and profitability. The authors present an analysis of the distribution of firm efficiencies across industries as a whole, and by a number of industry groups.

Only a limited sample (with regard to the time span) of Australian firms is used. A major assumption of the procedure is that firm efficiencies are constant over time. Given the short time period used in the empirical application, this does not appear to be unrealistic.

The paper provides firms with easy‐to‐use tools with which to benchmark their performance relative to other firms, conditional on their base characteristics.

This is the first time that this type of benchmarking exercise has been applied to firm profitability using relatively simple panel data techniques: it will be of use to market analysts, managers and shareholders alike.

The purpose of this study is to review a major section of the literature on benchmarking practices in order to achieve better perspectives for emerging benchmarking research streams.

The paper examines the benchmarking literature and presents a framework that suggests evolving patterns of firms' benchmarking practices. This paper examines the studies published in Benchmarking: An International Journal and other articles related to benchmarking practices in major Strategic Management, OM/SCM, and Technology Management journals from 2001 to 2010.

Benchmarking remains an important strategic tool of business in turbulent times. Five research dimensions for benchmarking are discussed in terms of the following: strategy‐based benchmarking; operational effectiveness‐based benchmarking; technical efficiency‐based benchmarking; and micro‐macro integrative benchmarking. For sustainable competitive advantage, benchmarking goes beyond the operational level and moves into a wide range of value chain, strategic, operational, and project levels.

The study contributes to the benchmarking literature by identifying key areas of benchmarking. It reflects a qualitative orientation, but future research may achieve a more systematic and quantitative analysis of the benchmarking literature.

This review paper is unique in that it examines the benchmarking literature and summarizes the results in order to gain a proper understanding of benchmarking and provide perspectives for future research.