Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Persistent and transient efficiency of international airlines
Jönköping University, Jönköping International Business School, JIBS, Economics. Department of Economics, Sogang University, Seoul, Korea.ORCID iD: 0000-0002-7902-4683
Department of Economics, Binghamton University, Binghamton, NY, USA.
Department of Economics and Trade, Sejong University, Seoul, Korea.
2018 (English)In: European Journal of Transport and Infrastructure Research, ISSN 1567-7133, E-ISSN 1567-7141, Vol. 18, no 2, p. 213-238Article in journal (Refereed) Published
Abstract [en]

This paper examines the efficiency of international airlines for the period 1998-2012 using some competing stochastic frontier (SF) panel data models. It estimates a cost function for multi-output airline services, separating passenger and goods transportation at the national and international levels. Our preferred SF model distinguishes airlines heterogeneity from time-invariant persistent inefficiency, and transient (time-varying) inefficiency from random the noise component. This four component SF model is compared with two other competing SF models in which one of the four components is missing. All the models are estimated using the maximum likelihood method. The models give predicted values of persistent, transient and overall efficiency for each airline and time period. The mean and dispersion of cost efficiency amongst airlines differ by model specifications and according to their geographical area of operations. The performance difference may be a consequence of different market structures and deregulation processes and of specific competitive conditions such as resource availability and strategic alliances with competitors. The results confirm that, in general, none of the airlines is able to achieve full cost efficiency. We find that carriers based in the Asia region are more efficient than those operating in the European and North American regions. The bigger airlines are unable to take full advantage of economies of scale and are not more efficient than their smaller cousins.

Place, publisher, year, edition, pages
Technische Universiteit Delft , 2018. Vol. 18, no 2, p. 213-238
Keywords [en]
International airlines; firm heterogeneity; persistent inefficiency
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-38377ISI: 000430187500005Scopus ID: 2-s2.0-85045345034Local ID: IHHÖvrigtISOAI: oai:DiVA.org:hj-38377DiVA, id: diva2:1171881
Available from: 2018-01-08 Created: 2018-01-08 Last updated: 2019-01-03Bibliographically approved

Open Access in DiVA

Fulltext(755 kB)22 downloads
File information
File name FULLTEXT01.pdfFile size 755 kBChecksum SHA-512
41ec04168f547e4b548b96ac5cde51cc4811097e8f0a6e3f24cb6feaed60f405d07fd6911b633da02ffad824993db433c01d6b4f6f00b349c51a597272dc6bdd
Type fulltextMimetype application/pdf

Other links

ScopusFulltext

Authority records BETA

Heshmati, Almas

Search in DiVA

By author/editor
Heshmati, Almas
By organisation
JIBS, Economics
In the same journal
European Journal of Transport and Infrastructure Research
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 22 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 48 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf