Title: Managing airline productivity using data envelopment analysis

Authors: Dauw-Song Zhu; Chih-Te Lin; Chieh-Ju Yang; Kuo-Chung Chang

Addresses: Department of Business Administration, National Dong Hwa University, No. 1, Sec. 2, Da Hsueh Rd. Shou-Feng Hualien 974, Taiwan. ' Department of Business Administration, Nanya Institute of Technology, No. 2, Lane 46, Jhongmei 3rd St., Hualien 970, Taiwan. ' Department of Business Administration, National Dong Hwa University, No. 1, Sec. 2, Da Hsueh Rd. Shou-Feng Hualien 974, Taiwan. ' National Dong Hwa University, No. 1, Sec. 2, Da Hsueh Rd., Shou-Feng, Hualien, 974, Taiwan

Abstract: This study evaluated the operation performance of domestic airlines based on data envelopment analysis in terms of cost-efficiency, service-effectiveness and cost-effectiveness for each company. The result shows the following: firstly, the rank of performance is from the top UNI followed by FAT, MDN, and TNA in last. Secondly, the four domestic airlines performed well from a service-effectiveness perspective. The rank of performance on service-effectiveness is from the top TNA followed by FAT, MDN, and UNI in last. Thirdly, the four domestic airlines performed well in terms of cost-effectiveness. The rank of performance on cost-effectiveness is from the highest TNA followed by FAT, UNI, and MDN in last. None of the airlines performed well from the perspective of cost-efficiency, service-effectiveness and cost-effectiveness. Lastly, the TNA airline was shown to be the most efficient and effective company.

Keywords: performance evaluation; grey relational analysis; Malmquist DEA; data envelopment analysis; airline productivity; operation performance; domestic airlines; cost-efficiency; service-effectiveness; cost-effectiveness; UNI Air; Far Eastern Air Transport; FAT Taiwan; TransAsia Airways; TNA; Mandarin Airlines; business performance; performance management; efficiency management; service sector organisations.

DOI: 10.1504/IJBPM.2012.047297

International Journal of Business Performance Management, 2012 Vol.13 No.3/4, pp.294 - 311

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 11 Jun 2012 *

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