01151168

Component

https://doi.org/10.3141/2177-06

http://scholar.google.com...alee&publication_year=2010

This research measured and compared the productivity and cost competitiveness of nine major North American carriers during the period 1990 to 2007. The research resulted in several key findings. First, the airlines’ productivity levels, measured either by total factor productivity or residual total factor productivity (RTFP), significantly improved over the study period, especially after 2003. Second, airlines’ productivity levels were correlated with the overall economic cycle. The Gulf War and the September 11, 2001, terrorist attacks clearly affected airlines’ productivity levels in the early 1990s and in 2001 and 2002, respectively. However, neither level made a significant impact on the overall trend of productivity change. Third, no evidence suggested that the airlines’ productivity levels were converging, although they served significantly overlapping markets. Fourth, labor costs were the most important determinant of airlines’ cost competitiveness during the study period. Restructuring efforts by these airlines are necessary and helpful, but good control of labor costs will still be important. Fifth, airlines with more aggressive fleet expansion levels than the industry average suffered a decrease in productivity. The airlines should, therefore, consider growth strategy more carefully. Sixth, significant efficiency gains in recent years have largely been offset by the sharp increase in fuel prices. This limits the airlines’ ability to stimulate traffic growth via a substantial price reduction. Last, preliminary evidence showed that bankruptcy protection during the sample period allowed the filing airlines to improve their RTFPs more than the industry average.

01324709

10-2019

English

pp 41-48

2010

Transportation Research Record: Journal of the Transportation Research Board

9780309160476

Print

Figures (2) ; References (27) ; Tables (4)

Air transportation policy; Airlines; Aviation; Bankruptcy; Competition; Economic growth; Labor costs; Productivity; Restructuring

North American Airlines

Fuel prices; Performance indicators; Total factor productivity

Aviation; Economics; Planning and Forecasting; Policy; I10: Economics and Administration; I72: Traffic and Transport Planning

TRIS, TRB, ATRI

Jan 25 2010 10:56AM

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• Automated Measurement of Wait Times at Airport Security: Deployment at Indianapolis International Airport, Indiana
• Estimation of Flight Delay Costs for U.S. Domestic Air Passengers
• Flight Delay Propagation Impact on Strategic Air Traffic Flow Management
• Impact of Airport Noise on Property Values: Case of Suvarnabhumi International Airport, Bangkok, Thailand
• Incorporating Risk of Failure into Maintenance Management of Cracks in Runway Pavements
• Macroscopic Tool for Measuring Delay Performance in National Airspace System
• Mitigation of Aviation Emissions of Carbon Dioxide: Analysis for Europe
• Modeling Framework for Evaluating Sensitivity of Airline Schedules to Airport Congestion Pricing
• Performance of New Materials for Aircraft Arrestor Beds
• Regional Cooperation, Coordination, and Communication Between Airports During Disasters
• Statistical Characteristics of Aircraft Arrival Tracks
• True Multimodalism for Mitigating Airport Congestion: Substitution of Air Passenger Transport by High-Speed Rail
• Validation of Runway Capacity Models