Measuring the Operational Efficiency of the Six Airlines in China

Applying the method of Data Envelopment Analysis (DEA) through building the CCR and BCC models with two inputs and two outputs. We analyze the technical efficiency, pure technical efficiency, scale efficiency, technique efficiency change, pure technical efficiency change, scale efficiency change and Malmquist productivity index of Chinese major airlines(including Air China, China Eastern, China Southern, Hainan Airlines, Shanghai Airlines and Shandong Airlines) from 2000 to 2004. The research found a lasting decreasing technical efficiency trend in these five years, the Malmquist productivity index fluctuate in the round of 1. Knowing from each year, there are two MPI > 1 and two MPI < 1 in industry; it shows the status that big in both ends and low in the middle.

[1]  Sergio Perelman,et al.  Technical Efficiency and Productivity Growth in an Era of Deregulation: the Case of Airlines , 1994 .

[2]  Robin C. Sickles,et al.  Airline efficiency differences between Europe and the US: Implications for the pace of EC integration and domestic regulation , 1995 .

[3]  Allen N. Berger,et al.  The dominance of inefficiencies over scale and product mix economies in banking , 1991 .

[4]  D. Stasinopoulos.  The second aviation package of the European Community. , 1992 .

[5]  Lars-Hendrik Röller,et al.  Efficiency and productivity growth comparisons of European and U.S. Air carriers: A first look at the data , 1993 .

[6]  Abraham Charnes,et al.  Measuring the efficiency of decision making units , 1978 .

[7]  Raghbendra Jha,et al.  TOWARDS MEASURING AIRLINE TECHNICAL INEFFICIENCY: THE CASE OF CANADIAN AIRLINES INDUSTRY. , 1992 .

[8]  L. R. Christensen,et al.  Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ , 1984 .

[9]  R. Färe,et al.  Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries , 1994 .

[10]  R. Färe,et al.  Productivity changes in Swedish pharamacies 1980–1989: A non-parametric Malmquist approach , 1992 .

[11]  M. Al-Jazzaf.  Impact of privatization on airlines performance: an empirical analysis , 1999 .

[12]  Meryem Duygun Fethi.  Efficiency and productivity growth in the European airlines industry : applications of data envelopment analysis, Malmquist productivity index and Tobit analysis , 2000 .

[13]  I. Semenick.  MOVEMENTS OF DOMESTIC AIRLINE TECHNICAL EFFICIENCY SCORES OVER TIME: IMPLICATIONS FOR FUTURE INDUSTRY STRUCTURE , 1994 .