Efficieny and Factors Determining Efficiency: An Emprical Review on Airlines

Abstract

The aim of this study is to examine the yearly changes in the efficiency of airlines and to reveal the factors that determine this efficiency. In this context, 45 airlines operating in different regions of the World, with data for 2010-2016 period, have been examined empirically. The change in the efficiency of airlines over the years was explored using data envelopment analysis (VZA). The factors determining the efficiency were examined through the Tobit regression method. Findings of the study Show that the fourteen airlines involved in the analysis are efficient in the period concerned and have a better performance than other airlines. Ten airlines were not efficient in all of the related periods. Tobit analysis results show that the positive increase in the number of total passengers carried, load factors and total income variables increases the efficiency level.