Capital structure in the world airline industry

Efficiency of US airlines: A strategic operating model

“…However, ASM (service supply) and RPM (service demand) efficiency ratios were not significantly different. We speculate that the large airlines had the benefit of economies of scale in spending operating dollars and absorbing the external market failures (Capobianco and Fernandes, 2004;Alvarez and Crespi, 2003;Khanna and Palepu, 2000). This is a likely reason for airline mergers and acquisitions during that period (Barros and Peypoch, 2009;.…”

“…Capobianco and Fernandes (2004) 53 international airlines 1993e97 Standard DEA Large airline companies use capital efficiently to generate return with a low level of fixed assets. Airlines performance depends on their management.…”

The relationship between business cycles and capital structure choice: The case of the international shipping industry

“…we chose LTAN as one of the external instruments based on evidence that fixed assets are an important determinant of financial performance in the transport industry (see Pires Capobianco & Fernandes, 2004). The use of cross-sectional data imply that the error terms may be correlated and exhibit arbitrary patterns of heteroskedasticity.…”

Financial performance of air transport companies: an analysis of the non-Pareto-efficient space in data envelopment analysis

“…Financial leverage (input) is calculated by dividing the total asset by net worth, and firm size (output) is computed as the logarithm of the net income and tangible assets (output) is the ratio between fixed assets and totals. Even though Capobianco and Fernandes (2004) point out that there is no consensus about the relationship direction of the variables, being it possible to be positive, negative or insignificant, for the objectives of this article it is important that there is a negative relationship between the leverage and the other variables, for the application of the input minimization model used in DEA.…”

“…However, Charnes et al [1] demonstrate that the conclusions for this case can be generalized for a varied number of inputs and outputs. The case study developed for this article deepens the analyses carried out by Capobianco and Fernandes [2], and Fernandes and Capobianco [3] for airlines positioned in the non-Pareto-efficient region, using Russel's efficiency approach. Results show that the performance evaluation of the DMUs located in the nonPareto-efficient regions (R 2 , R 3 , and R 4 in Figure 1) can be distinct from the one calculated by the classical methodology.…”