Operational efficiency of ASEAN airlines: based on DEA and bootstrapping approaches

Jin-Li Hu*, Yang Li, Hsin Jing Tung

*Corresponding author for this work

Research output: Contribution to journalArticle

3 Scopus citations

Abstract

Purpose: For strategic and competitive insights, the purpose of this paper is to measure and benchmark the comparative operating efficiencies of Association of Southeast Asian Nations’ (ASEAN) major airlines and present a new interpretation along with managerial implications. Design/methodology/approach: This research statistically tests returns to scale and the equality of mean efficiencies for 15 ASEAN airlines covering the period 2010-2014. The disaggregate input efficiency of ASEAN airlines is computed by comparing the target and actual inputs. Findings: The disaggregate input efficiency of ASEAN airlines shows that aircraft efficiency is the lowest, operating cost efficiency is better, and available seat efficiency is the best. Originality/value: This paper applies data envelopment analysis models, disaggregated input efficiency measures, and bootstrapping approaches to compute the operational efficiency of ASEAN airlines. Strategic suggestions are made to improve the operational efficiency of ASEAN airlines.

Original languageEnglish
Pages (from-to)957-986
Number of pages30
JournalManagement Decision
Volume55
Issue number5
DOIs
StatePublished - 1 Jan 2017

Keywords

  • Aggregated and disaggregated input efficiency
  • Airline efficiency
  • ASEAN
  • Bootstrap
  • Data envelopment analysis (DEA)

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