The Determinants of Airline Operational Performance: An Empirical Study on Major World Airlines
- 1 January 2020
- journal article
- research article
- Published by Sosyoekonomi in Sosyoekonomi
- Vol. 28 (43), 107-117
- https://doi.org/10.17233/sosyoekonomi.2020.01.06
Abstract
The air transport industry is a dynamic sector and operates in a dynamic environment. This situation leads to intense competition among airlines and, consequently, to a search for new methods to improve the operational performance. It is claimed that revealing the factors affecting the operational performance of airline companies might provide them with strategic advantages in such a competitive market. Therefore, this study attempts to fill a gap existant in the current literature by empirically examining the factors determining the operational performance of airline companies. The operational data for the period between 1990 and 2017 of 52 airlines, which control more than 90% of the global air passenger transport industry, were analyzed using panel data analysis. The results of the study show that the number of passengers carried, the load factor, the number of flights made by the airlines, the rate of use of the aircraft and the amount of cargo carried by the airlines significantly affect their operational performance.Keywords
This publication has 28 references indexed in Scilit:
- An outsourcing provider decision model for the airline industryJournal of Air Transport Management, 2013
- European vs. U.S. airlines: Performance comparison in a dynamic marketTourism Management, 2012
- Airline Operating Costs and Measures of ProductivityPublished by Wiley ,2009
- Airline safety measurement using a hybrid modelJournal of Air Transport Management, 2007
- Route-based performance evaluation of Taiwanese domestic airlines using data envelopment analysisTransportation Research. Part E, Logistics and Transportation Review, 2006
- The nature and prevalence of the use of performance measurement techniques by airlinesJournal of Air Transport Management, 2005
- Passenger expectations and airline services: a Hong Kong based studyTourism Management, 2003
- Operational performance of airlines: An extension of traditional measurement paradigmsStrategic Management Journal, 1993
- Profitability and Product Quality: Economic Determinants of Airline Safety PerformanceJournal of Political Economy, 1990
- Efficiency and Competition in the Airline IndustryThe Bell Journal of Economics, 1983