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  • Technical efficiency of mainstream airlines and low-cost carriers: New evidence using bootstrap data envelopment analysis truncated regression

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    Author(s)
    Lee, Boon L
    Worthington, Andrew C
    Griffith University Author(s)
    Worthington, Andrew C.
    Year published
    2014
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    Abstract
    Between 2001 and 2005, the US airline industry faced financial turmoil while the European airline industry entered a period of substantive deregulation. Consequently, this opened up opportunities for lowcost carriers to become more competitive in the market. To assess airline performance and identify the sources of efficiency in the immediate aftermath of these events, we employ a bootstrap data envelopment analysis truncated regression approach. The results suggest that at the time the mainstream airlines needed to significantly reorganize and rescale their operations to remain competitive. In the second-stage analysis, the ...
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    Between 2001 and 2005, the US airline industry faced financial turmoil while the European airline industry entered a period of substantive deregulation. Consequently, this opened up opportunities for lowcost carriers to become more competitive in the market. To assess airline performance and identify the sources of efficiency in the immediate aftermath of these events, we employ a bootstrap data envelopment analysis truncated regression approach. The results suggest that at the time the mainstream airlines needed to significantly reorganize and rescale their operations to remain competitive. In the second-stage analysis, the results indicate that private ownership, status as a low-cost carrier, and improvements in weight load contributed to better organizational efficiency.
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    Journal Title
    Journal of Air Transport Management
    Volume
    38
    DOI
    https://doi.org/10.1016/j.jairtraman.2013.12.013
    Copyright Statement
    © 2014 Elsevier. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
    Subject
    Urban and regional planning
    Transport economics
    Transportation, logistics and supply chains
    Publication URI
    http://hdl.handle.net/10072/66422
    Collection
    • Journal articles

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