International Air Transportation Carriers: Evidence from SFA and DEA Technical Efficiency Results (1991-2000)
In this paper we estimate technical efficiency in International Air Transport, by means of Stochastic Frontier Analysis (SFA) using a panel set of the world's twenty-four (24) largest network airlines, for the period 1991-2000. The results are compared to those from Data Envelopment Analysis (DEA), a popular approach for efficiency measurement in the literature. Findings suggest that airlines experience constant returns to scale, while technical efficiency ranges between 51% and 97% approximately. Furthermore, the level of technology experienced a slight increase, while the privatization of few of the airlines in the data set didn’t seem to affect their technical efficiency. Results from SFA and DEA do not vary significantly.
EJTIR is licensed under a Creative Commons Attribution 4.0 International (CC BY 4.0) licence. The license means that anyone is free to share (to copy, distribute, and transmit the work), to remix (to adapt the work) under the following conditions:
- The original authors must be given credit
- For any reuse or distribution, it must be made clear to others what the license terms of this work are
- Any of these conditions can be waived if the copyright holders give permission
- Nothing in this license impairs or restricts the author's moral rights