A comparative study of airline efficiency in China and India: A dynamic network DEA approach

Article

Yu, Hang, Zhang, Yahua, Zhang, Anming, Wang, Kun and Cui, Qiang. 2019. "A comparative study of airline efficiency in China and India: A dynamic network DEA approach." Research in Transportation Economics. 76, pp. 1-12. https://doi.org/10.1016/j.retrec.2019.100746
Article Title

A comparative study of airline efficiency in China and India: A dynamic network DEA approach

ERA Journal ID36049
Article CategoryArticle
AuthorsYu, Hang (Author), Zhang, Yahua (Author), Zhang, Anming (Author), Wang, Kun (Author) and Cui, Qiang (Author)
Journal TitleResearch in Transportation Economics
Journal Citation76, pp. 1-12
Article Number100746
Number of Pages12
Year2019
Place of PublicationNetherlands
ISSN0739-8859
1875-7979
Digital Object Identifier (DOI)https://doi.org/10.1016/j.retrec.2019.100746
Web Address (URL)https://www.sciencedirect.com/science/article/pii/S0739885919302586
Abstract

Using a dynamic network DEA approach, this research examines the efficiency performance of major Chinese and Indian air carriers with a consideration of the airline's internal processes and links as well as the carry-over items that connect consecutive time periods. It is found that two low-cost carriers (LCCs), namely, China's Spring and India's SpiceJet were the most efficient carriers during the period between 2008 and 2015. China's three state-owned airlines performed poorly in both the capacity generation and service stages, particularly the latter. The second-stage regression results confirm that the LCC model and private ownership are significantly associated with better airline efficiency performance. This paper thus calls for continual reforms in China's air transport including further privatisation and policy support for LCCs and private carriers to improve the overall efficiency of this industry.

KeywordsChina, India, Efficiency, Dynamic and network DEA, Private airlines, Low-cost carriers
ANZSRC Field of Research 2020350901. Air transportation and freight services
380109. Industry economics and industrial organisation
380117. Transport economics
Byline AffiliationsShanghai Maritime University, China
School of Commerce
University of British Columbia, Canada
University of International Business and Economics, China
Southeast University, China
Institution of OriginUniversity of Southern Queensland
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