Efficiency Analysis of Domestic Airlines in Taiwan
Dr. Jinn-Tsai Wong
|Keywords:||國內航線航空公司;資料包絡分析;經營效率;Taiwan's domestic airlines;Data Envelopment Analysis，DEA;operation efficiency|
The main focus of this paper is on operation efficiency of Taiwan's domestic airlines. Efficiency variation for each airline during the 1984-1998 period and efficiency difference among airlines are analyzed. For those relatively inefficient airlines, the source of the inefficiency is identified. The direction and the associate magnitude for the improvement are also proposed. Furthermore to analyze the efficiency change resulting from the technology and the productivity improvement due to the open sky policy, an airline's efficiency shift model is applied. Finally, the profitability and operation efficiency as well as the associated correlation are studied. The research result shows that the airlines operating network in main-island have better performance than their counterpart which operates off-shore island routes. Meanwhile, all of the new-entrant airlines have non-zero slack in the initial stage of their operation. It means that all new-entrant airlines can't use their inputs efficiently in the initial stage. In other words, the output are not optimal. As to the scale of airlines, most of the airlines after 1995 are over the optimal scale. As a result, the returns to scale is decreasing. This suggests that the domestic air transport market has saturated. Over supply will undoubtedly bring about the inefficiency and results of decrease returns to scale. Since evidence of the operation efficiency and profitability reveals that they are highly correlated, airline efficiency could be a good indicator to illustrate airlines profitability.
|Appears in Collections:||Thesis|