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Understanding The Operating Landscape Of The Global Airline Industry: A Dea Integrated Alternating Conditional Expectation Approach, Joyce M. W. Low, Kum Khiong Yang
Understanding The Operating Landscape Of The Global Airline Industry: A Dea Integrated Alternating Conditional Expectation Approach, Joyce M. W. Low, Kum Khiong Yang
Research Collection Lee Kong Chian School Of Business
Purpose: This study investigates the relationships between service efficiency in 5 major cost centres (namely, business orientation, network coverage, physical resources, maintenance, repair and overhaul (MRO), and human resources) and profitability in the global airline industry. Design/methodology: The study integrates the Slack-based Model (SBM) of Data Envelopment Analysis (DEA) with the Alternating Conditional Expectation (ACE) regression to understand the relationships between an airline’s profitability and its efficiencies in 5 identified operations areas. Findings: Based on the observational data obtained from 75 international airlines, the relationships between operational performances and profitability are found to be curvilinear and contingent on an airline’s …