Abstract
The aim of the study is to compare airlines by carrying out measurement of efficiency of them obtaining different business models in terms of financial. The other aim is to reveal variables which have influence on score of efficiency. With this regard, airlines are separated into two groups, namely, traditional and low-cost airlines based on their business models. While the measurement of traditional and low-cost airlines efficiency was carried out with Data Envelopment Analysis, factors affecting efficiency scores of airlines were determined by Tobit regression model. According to the results of the study, airlines obtaining low-cost business model are more efficient than airlines obtaining traditional business model in terms of financial. Moreover, large-scale traditional airlines are more efficient than medium-scale traditional airlines. In terms of Tobit regression model, there are different results for two groups.
Keywords
Efficiency Data Envelopment Analysis Tobit regression model Traditional airlines Low-cost airlines
References
- ADLER, N., FRIEDMAN, L. and SINUANY-STERN, Z. (2002). "Review of Ranking Methods in the Data Envelopment Analysis Context", European Journal of Operational Research, 140, 249-265.
- AKAN, Y. and ÇALMAŞUR, G. (2011). "Etkinliğin Hesaplanmasında Veri Zarflama Analizi ve Stokastik Sınır Yaklaşımı Yöntemlerinin Karşılaştırılması", Atatürk Üniveristesi İktisadi İdari Bilimler Dergisi, 13-32.
- Barbot, C., COSTA, A. and SOCHIRCA, E. (2008). "Airlines Performance in the New Market Context: A Comparative Productivity", Journal of Air Transport Management, 270-274.
- BHADRA, D. (2009). "Race to The Bottom or Swimming Upstream: Performance Analysis of US Airlines", Journal of Air Transport Management, 227-235.
- CHARNES, A., COOPER, W. W. and RHODES, E. L. (1978). "Measuring The Efficiency of Decision Making Units", European Journal of Operational Research, 2(6), 429-444.
- CHIOU, Y. C. and CHEN, Y. H. (2006). "Route-Based Performance Evaluation of Taiwanese Domestic Airlines Using Data Envelopment Analysis. Transportation Research Part E: Logistics and Transportation Review, 116-127.
- COOK, W. D. and ZHU, J. (2005). Modeling Performance Measurment Application and Implementation Issues in DEA, Springer, New York.
- COOPER, W., SEIFORD, L. and TONE, K. (2007). Data Envelopment Analysis a Comprehensive Text with Models, Applications References and Dea- Solver Software, Springer, Newyork.
- ELSAYED, A. and KHALIL, N. S. (2017). "Evaluate and Analysis Efficiency of Safaga Port Using DEA-CCR, BCC and SBM Models–Comparison with DP World Sokhna", IOP Conference Series: Materials Science and Engineering, 245, 1-11.
- GOOD, D. H., RÖLLER, L.-H. and SICKLES, R. C. (1995). "Airline Efficiency Differences Between Europe and the US: Implications For The Pace of EC İntegration And Domestic Regulation", European Journal of Operational Research, 508-518.
- GREENE, W. H. (2003). Econometrıc Analysıs, Prentice Hall, New Jersey.
- GUJARATi, D. N. and PORTER, D. C. (2012). Temel Ekonometri. (Ü. Şenesen. ve G. Şenesen, Çev.), Literatür Yayıncılık, İstanbul.
- LANG, P., YOLALAN, R. and KETTANI, O. (1995). "Controlled Envelopment By Face Extension", Journal of the Operational Research Society, 473-491.
- LEE, B., and WORTHINGTON, A. (2014). "Technical Efficiency of Mainstream Airlines and Low-Cost Carriers: New Evidence Using Bootstrap Data Envelopment Analysis Truncated Regression", Journal of Air Transport Management, 15-20.
- LU, W.-M., WANG, W.-K., HUNG, S.-W. and LU, E.-T. (2012). The Effects of Corporate Governance on Airline Performance: Production and Marketing Efficiency Perspectives. Transportation Research Part E, 529-544.
- OHSATO, S. and TAKAHASHI, M. (2015). "Management Efficiency in Japanese Regional Banks: A Network DEA", Procedia - Social and Behavioral Sciences, 172, 511-518.
- PIRES, H. M. and FERNANDES, E. (2012). Malmquist Financial Efficiency Analysis For Airlines", Transportation Research Part E, 1049-1055.
- POURJAVAD, E., and SHIROUYEHZAD, H. (2014). "A Data Envelopment Analysis Approach For Measuring The Efficiency in Continuous Manufacturing Lines: A Case Study", International Journal of Services and Operations Management, 18(2), 142-158.
- SCHEFCZYK, M. (1993). "Operational Performance of Airlines: An Extension of Traditional Measurment Paradigms", Strategic Management Journal, 301-317.
- SCHERAGA, C. A. (2004). "Operational Efficiency Versus Financial Mobility in The Global Airline İndustry: A Data Envelopment and Tobit Analysis" Transportation Research Part A, 383-404.
- ŞENGÜL, Ü., ESLAMIAN, S. and EREN, M. (2013). "Türkiye'de İstatistiki Bölge Birimleri Sınıflamasına Göre Düzey 2 Bölgelerinin Ekonomik Etkinliklerinin VZA Yöntemi ile Belirlenmesi ve Tobit Model Uygulaması", Çanakkale Onsekiz Mart Üniversitesi Yönetim Bilimleri Dergisi, 75-99.
- ÜÇDOĞRUK, Ş., AKIN, F. and EMEÇ, H. (2001). "Türkiye Hanehalkı Eğlence Kültür Harcamalarında Tobit Modelin Kullanımı", İktisadi ve İdari Bilimler Fakültesi Dergisi, 13-26.
- WANG, W.-K., LIN, F., TING, I. W., KWEH, Q. L., LU, W.-M. and CHIU, T.-Y. (2017)." Does Asset-Light Strategy Contribute to The Dynamic Efficiency of Global Airlines?", Journal of Air Transport Management, 62, 99-108.
- WENG, S. J., WU, T., BLACKHURST, J. and MACKULAK, G. (2009). "An Extended DEA Model For Hospital Performance Evaluation and İmprovement", Health Service Outcomes Research Method, 39-53.
- YOLALAN, R. (1993). İşletmelerarası Göreli Etkinlik Ölçümü, Milli Prodüktivite Merkezi Yayınları, Ankara.
- ZHOU, H., Yi, Y., CHEN, Y. and ZHU, J. (2018). "Data Envelopment Analysis Application in Sustainability: The Origins, Development and Future Directions", European Journal of Operational Research, 264(1), 1-16.
Abstract
The aim of the study is to compare airlines by carrying out measurement of efficiency of them obtaining different business models in terms of financial. The other aim is to reveal variables which have influence on score of efficiency. With this regard, airlines are separated into two groups, namely, traditional and low-cost airlines based on their business models. While the measurement of traditional and low-cost airlines efficiency was carried out with Data Envelopment Analysis, factors affecting efficiency scores of airlines were determined by Tobit regression model. According to the results of the study, airlines obtaining low-cost business model are more efficient than airlines obtaining traditional business model in terms of financial. Moreover, large-scale traditional airlines are more efficient than medium-scale traditional airlines. In terms of Tobit regression model, there are different results for two groups.
Keywords
Efficiency Data envelopment analysis Tobit regression model Traditional airlines Low-cost airlines
References
- ADLER, N., FRIEDMAN, L. and SINUANY-STERN, Z. (2002). "Review of Ranking Methods in the Data Envelopment Analysis Context", European Journal of Operational Research, 140, 249-265.
- AKAN, Y. and ÇALMAŞUR, G. (2011). "Etkinliğin Hesaplanmasında Veri Zarflama Analizi ve Stokastik Sınır Yaklaşımı Yöntemlerinin Karşılaştırılması", Atatürk Üniveristesi İktisadi İdari Bilimler Dergisi, 13-32.
- Barbot, C., COSTA, A. and SOCHIRCA, E. (2008). "Airlines Performance in the New Market Context: A Comparative Productivity", Journal of Air Transport Management, 270-274.
- BHADRA, D. (2009). "Race to The Bottom or Swimming Upstream: Performance Analysis of US Airlines", Journal of Air Transport Management, 227-235.
- CHARNES, A., COOPER, W. W. and RHODES, E. L. (1978). "Measuring The Efficiency of Decision Making Units", European Journal of Operational Research, 2(6), 429-444.
- CHIOU, Y. C. and CHEN, Y. H. (2006). "Route-Based Performance Evaluation of Taiwanese Domestic Airlines Using Data Envelopment Analysis. Transportation Research Part E: Logistics and Transportation Review, 116-127.
- COOK, W. D. and ZHU, J. (2005). Modeling Performance Measurment Application and Implementation Issues in DEA, Springer, New York.
- COOPER, W., SEIFORD, L. and TONE, K. (2007). Data Envelopment Analysis a Comprehensive Text with Models, Applications References and Dea- Solver Software, Springer, Newyork.
- ELSAYED, A. and KHALIL, N. S. (2017). "Evaluate and Analysis Efficiency of Safaga Port Using DEA-CCR, BCC and SBM Models–Comparison with DP World Sokhna", IOP Conference Series: Materials Science and Engineering, 245, 1-11.
- GOOD, D. H., RÖLLER, L.-H. and SICKLES, R. C. (1995). "Airline Efficiency Differences Between Europe and the US: Implications For The Pace of EC İntegration And Domestic Regulation", European Journal of Operational Research, 508-518.
- GREENE, W. H. (2003). Econometrıc Analysıs, Prentice Hall, New Jersey.
- GUJARATi, D. N. and PORTER, D. C. (2012). Temel Ekonometri. (Ü. Şenesen. ve G. Şenesen, Çev.), Literatür Yayıncılık, İstanbul.
- LANG, P., YOLALAN, R. and KETTANI, O. (1995). "Controlled Envelopment By Face Extension", Journal of the Operational Research Society, 473-491.
- LEE, B., and WORTHINGTON, A. (2014). "Technical Efficiency of Mainstream Airlines and Low-Cost Carriers: New Evidence Using Bootstrap Data Envelopment Analysis Truncated Regression", Journal of Air Transport Management, 15-20.
- LU, W.-M., WANG, W.-K., HUNG, S.-W. and LU, E.-T. (2012). The Effects of Corporate Governance on Airline Performance: Production and Marketing Efficiency Perspectives. Transportation Research Part E, 529-544.
- OHSATO, S. and TAKAHASHI, M. (2015). "Management Efficiency in Japanese Regional Banks: A Network DEA", Procedia - Social and Behavioral Sciences, 172, 511-518.
- PIRES, H. M. and FERNANDES, E. (2012). Malmquist Financial Efficiency Analysis For Airlines", Transportation Research Part E, 1049-1055.
- POURJAVAD, E., and SHIROUYEHZAD, H. (2014). "A Data Envelopment Analysis Approach For Measuring The Efficiency in Continuous Manufacturing Lines: A Case Study", International Journal of Services and Operations Management, 18(2), 142-158.
- SCHEFCZYK, M. (1993). "Operational Performance of Airlines: An Extension of Traditional Measurment Paradigms", Strategic Management Journal, 301-317.
- SCHERAGA, C. A. (2004). "Operational Efficiency Versus Financial Mobility in The Global Airline İndustry: A Data Envelopment and Tobit Analysis" Transportation Research Part A, 383-404.
- ŞENGÜL, Ü., ESLAMIAN, S. and EREN, M. (2013). "Türkiye'de İstatistiki Bölge Birimleri Sınıflamasına Göre Düzey 2 Bölgelerinin Ekonomik Etkinliklerinin VZA Yöntemi ile Belirlenmesi ve Tobit Model Uygulaması", Çanakkale Onsekiz Mart Üniversitesi Yönetim Bilimleri Dergisi, 75-99.
- ÜÇDOĞRUK, Ş., AKIN, F. and EMEÇ, H. (2001). "Türkiye Hanehalkı Eğlence Kültür Harcamalarında Tobit Modelin Kullanımı", İktisadi ve İdari Bilimler Fakültesi Dergisi, 13-26.
- WANG, W.-K., LIN, F., TING, I. W., KWEH, Q. L., LU, W.-M. and CHIU, T.-Y. (2017)." Does Asset-Light Strategy Contribute to The Dynamic Efficiency of Global Airlines?", Journal of Air Transport Management, 62, 99-108.
- WENG, S. J., WU, T., BLACKHURST, J. and MACKULAK, G. (2009). "An Extended DEA Model For Hospital Performance Evaluation and İmprovement", Health Service Outcomes Research Method, 39-53.
- YOLALAN, R. (1993). İşletmelerarası Göreli Etkinlik Ölçümü, Milli Prodüktivite Merkezi Yayınları, Ankara.
- ZHOU, H., Yi, Y., CHEN, Y. and ZHU, J. (2018). "Data Envelopment Analysis Application in Sustainability: The Origins, Development and Future Directions", European Journal of Operational Research, 264(1), 1-16.
Details
| Primary Language | English |
|---|---|
| Subjects | Finance |
| Journal Section | Makaleler |
| Authors | |
| Publication Date | May 31, 2021 |
| Acceptance Date | May 19, 2021 |
| Published in Issue | Year 2021 Volume: 5 Issue: 2 |
