Productivity efficiency analysis of the airlines in China after deregulation

Using data envelopment analysis and the Malmquist productivity index, this paper studies productivity efficiency of various airlines in China after the Chinese government deregulated the aviation industry in 2005. The results show that the productivity efficiency of non-state-owned airlines improves rapidly and eventually exceeds state-owned airlines after the deregulation policy. Among the state-owned airlines, the productivity of the local airlines and their technical changes are better than those of the central airlines.

[1]  Vincent O Ongore.  The relationship between ownership structure and firm performance: An empirical analysis of listed companies in Kenya , 2011 .

[2]  H. Demsetz,et al.  Ownership Structure and Corporate Performance , 2001 .

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

[4]  David A. Hensher,et al.  The impact of strategic management and fleet planning on airline efficiency – A random effects Tobit model based on DEA efficiency scores , 2011 .

[5]  R. Sickles,et al.  The Relationship Between Stock Market Returns and Technical Efficiency Innovations: Evidence from the US Airline Industry , 1998 .

[6]  L. R. Christensen,et al.  THE ECONOMIC THEORY OF INDEX NUMBERS AND THE MEASUREMENT OF INPUT, OUTPUT, AND PRODUCTIVITY , 1982 .

[7]  Carl A. Scheraga,et al.  Operational efficiency versus financial mobility in the global airline industry: a data envelopment and Tobit analysis , 2004 .

[8]  S Malmquost,et al.  INDEX NUMBERS AND INDIFFERENCE CURVES , 1953 .

[9]  J. Vickers,et al.  Reform of the electricity supply industry in Britain: An assessment of the development of public policy , 1991 .

[10]  M. Schefczyk.  Operational performance of airlines: An extension of traditional measurement paradigms , 1993 .

[11]  Panayotis Kapopoulos,et al.  Corporate Ownership Structure and Firm Performance: Evidence from Greek Firms , 2006, SSRN Electronic Journal.

[12]  Mei Yu,et al.  State ownership and firm performance: Empirical evidence from Chinese listed companies , 2013 .

[13]  Mark R. Greer.  Nothing focuses the mind on productivity quite like the fear of liquidation: Changes in airline productivity in the United States, 2000-2004 , 2008 .

[14]  C. Chow,et al.  Measuring the effects of China's airline mergers on the productivity of state-owned carriers , 2012 .

[15]  S. Malmquist.  Index numbers and indifference surfaces , 1953 .

[16]  Carlos Pestana Barros,et al.  Productivity analysis of European airlines, 2000–2011 , 2013 .