Identification and analysis of explanatory variables for a multi-factor productivity model of passenger airlines

Araújo Jr, Antonio Henriques de; Hegenberg, Flávio; Santos, Isabel Cristina dos; Barros, José Glênio Medeiros de

doi:10.5028/jatm.2011.03020111

ABSTRACT

The paper aimed to identify and analyze the explanatory variables for airlines productivity during 2000 2005, by testing the Pearson correlation between the single factor productivity capital, energy and labor of a sample of 45 selected international airlines (4 Brazilian carriers among them) and their productivity explanatory variables like medium stage length, aircraft load factor, hours flown and cruise speed for selected routes besides aircraft seat configuration and airlines number of employees. The research demonstrated, that a set of variables can explain differences in productivity for passenger airlines, such as: investment in personnel training processes, automation, airplane seat density, occupation of aircraft, average flight stage length, density and extension of routes, among others.

Keywords:
Multifactor productivity; Multifactor productivity model; Airline productivity; Passenger airline productivity

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REFERENCES

Bailey, E.E., Graham, R.D. and Kaplan, D.P., 1985, "Deregulating the Airlines", MIT Press, Cambridge, Massaschussets.
Caves, D.W., Christensen, L.R. and Diewert , 1982, "Multilateral comparisons of output, input, and productivity using superlative index numbers", The Economic Journal, Vol. 92, p.73- 86.
Cohen, J., 1988, "Statistical power analysis for the behavioral sciences", 2nd ed., Routledge Academic, London.
Distexhe, V., Perelman, S., 1994, "Technical efficiency and productivity growth in an era of deregulation: the case of airlines", Swiss Journal of Economics and Statistics, Vol. 130, No. 4, p. 668-669.
Doganis, R., 1985, "Flying off course: the economics of international airlines", New York Press, New York.
Douglas, G.W., Miller C.J. , 1974, "Economic Regulation of Domestic Air transport: Theory and Policy", The Brookings Institution, Washington D.C.
Duke, J, Torres, V., 2005, "Multifactor Productivity Change in the Air Transportation Industry", Monthly Labor Review, p. 32-45.
Encaoua, D., 1991, "Deregulating European Airlines", International Journal of Industrial Organisation, 1991, Vol. 9, p. 61-81.
Färe, R., Grosskopf, S. and Sickles, R.C., 2001, "Productivity of U.S. airlines after deregulation", Department of Agricultural and Resource Economics, Oregon State University.
Good, D.H., Nadiri, M.I., Röller, L.H. and Sickles, R.C., 1993, "Efficiency and Productivity Growth Comparisons of European and US air carriers: a first look at the data", The Journal of Productivity Analysis, Vol. 4, p. 115-125.
International Air Transport Association (IATA), 2001, "Annual Report (various years)", Geneve, Switzerland.
International Labor Organization (ILO), 2001, "Restructuring of Civil Aviation: Consequences for Management and Personnel", Reference Document, Geneve, Switzerland.
Kendrick, D.A., 1996, "Handbooks in Economics, Sectoral Economics, Chapter 6", Vol. 1, 13, Elsevier, Amsterdam, Netherlands.
Kune, B.C., Mulder, N., and Poudevigne, P., 2000, "La mesure du capital et de la productivité dans les Transports: le cas du transport aérien", Centre d'Etudes Prospectives et d' Informations Internationales, Notes de Syntheses du Sen, Paris, France.
McKinsey Global Institute, 1992, "Service Sector Productivity", McKinsey and Company Inc., Washington, D.C.
Moreira, D.A., 1994, "Os benefícios da Produtividade Industrial", Pioneira, São Paulo, Brazil.
Oum, T.H., Yu, C., 2001, "Assessment of Recent Performance of Canadian Carriers: Focus on Quantitative Evidence for evaluating", Report to the Canada Transportation Act.
Sickles, R.C., Good, D.H., Getachew, L., 2002, "Specification of Distance Functions Using Semi- and Nonparametric Methods with an Application to the Dynamic Performance of Eastern and Western European Air Carriers", Journal of Productivity Analysis, Vol. 17, p. 133-155.
Windle R. J., 1991, "The World's Airlines: Cost and Productivity Comparison", Journal of Transport Economics and Policy, Vol. 25, No. 1, p. 31-49.

Publication Dates

Publication in this collection
May-Aug 2011

History

Received
09 Feb 2011
Accepted
10 May 2011

This is an Open Access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

[1] Bailey, E.E., Graham, R.D. and Kaplan, D.P., 1985, "Deregulating the Airlines", MIT Press, Cambridge, Massaschussets.

[2] Caves, D.W., Christensen, L.R. and Diewert , 1982, "Multilateral comparisons of output, input, and productivity using superlative index numbers", The Economic Journal, Vol. 92, p.73- 86.

[3] Cohen, J., 1988, "Statistical power analysis for the behavioral sciences", 2nd ed., Routledge Academic, London.

[4] Distexhe, V., Perelman, S., 1994, "Technical efficiency and productivity growth in an era of deregulation: the case of airlines", Swiss Journal of Economics and Statistics, Vol. 130, No. 4, p. 668-669.

[5] Doganis, R., 1985, "Flying off course: the economics of international airlines", New York Press, New York.

[6] Douglas, G.W., Miller C.J. , 1974, "Economic Regulation of Domestic Air transport: Theory and Policy", The Brookings Institution, Washington D.C.

[7] Duke, J, Torres, V., 2005, "Multifactor Productivity Change in the Air Transportation Industry", Monthly Labor Review, p. 32-45.

[8] Encaoua, D., 1991, "Deregulating European Airlines", International Journal of Industrial Organisation, 1991, Vol. 9, p. 61-81.

[9] Färe, R., Grosskopf, S. and Sickles, R.C., 2001, "Productivity of U.S. airlines after deregulation", Department of Agricultural and Resource Economics, Oregon State University.

[10] Good, D.H., Nadiri, M.I., Röller, L.H. and Sickles, R.C., 1993, "Efficiency and Productivity Growth Comparisons of European and US air carriers: a first look at the data", The Journal of Productivity Analysis, Vol. 4, p. 115-125.

[11] International Air Transport Association (IATA), 2001, "Annual Report (various years)", Geneve, Switzerland.

[12] International Labor Organization (ILO), 2001, "Restructuring of Civil Aviation: Consequences for Management and Personnel", Reference Document, Geneve, Switzerland.

[13] Kendrick, D.A., 1996, "Handbooks in Economics, Sectoral Economics, Chapter 6", Vol. 1, 13, Elsevier, Amsterdam, Netherlands.

[14] Kune, B.C., Mulder, N., and Poudevigne, P., 2000, "La mesure du capital et de la productivité dans les Transports: le cas du transport aérien", Centre d'Etudes Prospectives et d' Informations Internationales, Notes de Syntheses du Sen, Paris, France.

[15] McKinsey Global Institute, 1992, "Service Sector Productivity", McKinsey and Company Inc., Washington, D.C.

[16] Moreira, D.A., 1994, "Os benefícios da Produtividade Industrial", Pioneira, São Paulo, Brazil.

[17] Oum, T.H., Yu, C., 2001, "Assessment of Recent Performance of Canadian Carriers: Focus on Quantitative Evidence for evaluating", Report to the Canada Transportation Act.

[18] Sickles, R.C., Good, D.H., Getachew, L., 2002, "Specification of Distance Functions Using Semi- and Nonparametric Methods with an Application to the Dynamic Performance of Eastern and Western European Air Carriers", Journal of Productivity Analysis, Vol. 17, p. 133-155.

[19] Windle R. J., 1991, "The World's Airlines: Cost and Productivity Comparison", Journal of Transport Economics and Policy, Vol. 25, No. 1, p. 31-49.

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