Airline operating performance indicators towards implications: An analysis of major North American airlines

Winai Homsombat, Xiaowen Fu, Agachai Sumalee

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

Abstract

This paper measures and compares the productivity and cost competitiveness of nine major North American carriers during the period of 1990-2007. The key findings are: (1) Overall, airlines' productivity levels, either measured by Total Factor Productivity (TFP) or Residual Total Factor Productivity (RTFP) has experienced significant improvements over the years. (2) Airlines' productivity levels are clearly correlated with the overall economic business cycle. The 9/11 incidence had a clear impact to airlines' productivity in 2001 and 2002, yet it had little impact to the overall trend of productivity change; (3) Airlines' productivity are not converging, if anything, the efficiency differences may have been enlarged. (4) Labor input price has been the most important determinant for airlines' cost competitiveness, thus a good control of labor cost is still of great importance in the future. (5) Aggressive fleet expansion has resulted in detrimental to the productivity and cost competitiveness of airlines.
Original languageEnglish
Title of host publicationProceedings of the 14th HKSTS International Conference
Subtitle of host publicationTransportation and Geography
Pages51-60
Number of pages10
Volume1
Publication statusPublished - 1 Dec 2009
Event14th HKSTS International Conference: Transportation and Geography - Kowloon, Hong Kong
Duration: 10 Dec 200912 Dec 2009

Conference

Conference14th HKSTS International Conference: Transportation and Geography
CountryHong Kong
CityKowloon
Period10/12/0912/12/09

ASJC Scopus subject areas

  • Transportation

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