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Title:

Developing a Non-Parametric Efficiency Measure That Accounts for Perceived Airline Service Levels and Profitability

Accession Number:

01516534

Record Type:

Component

Availability:

Transportation Research Board Business Office

500 Fifth Street, NW
Washington, DC 20001 United States

Abstract:

Customer service influences satisfaction, loyalty, repeat business and hence potentially profitability. This paper investigates whether airline customer service impacts upon airlines' profitability (the top-150 airlines worldwide). As the results suggest that this impact is limited, the authors then apply data envelopment analysis (DEA) models and develop, for the first time, a single efficiency measure that combines the typical airline targets of maximisation of RPKs, customer satisfaction, and profitability. The authors further use second-stage truncated regressions and show that only load factor (but neither fleet age, share of cabin crew in total staff nor low-cost carrier (LCC) operation) have a significant impact on overall airline efficiency.

Supplemental Notes:

This paper was sponsored by TRB committee AV040 Aviation Economics and Forecasting.

Monograph Accession #:

01503729

Report/Paper Numbers:

14-1633

Language:

English

Corporate Authors:

Transportation Research Board

500 Fifth Street, NW
Washington, DC 20001 United States

Authors:

Merkert, Rico
Pearson, James

Pagination:

14p

Publication Date:

2014

Conference:

Transportation Research Board 93rd Annual Meeting

Location: Washington DC
Date: 2014-1-12 to 2014-1-16
Sponsors: Transportation Research Board

Media Type:

Digital/other

Features:

References; Tables

Subject Areas:

Aviation; Economics; I10: Economics and Administration

Source Data:

Transportation Research Board Annual Meeting 2014 Paper #14-1633

Files:

TRIS, TRB, ATRI

Created Date:

Jan 27 2014 2:35PM