Impact of operating cost components on airline efficiency in India: A DEA approach

Sakthidharan, Visakh; Sivaraman, Sunitha

doi:10.1016/j.apmrv.2017.12.001

Cited by 19 publications

(7 citation statements)

References 21 publications

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“…Then, six MADM approaches are utilized to rank the alternatives. Sakthidharan and Sivaraman ( 2018 ) applied an input-oriented DEA model to examine how efficiently each airline used its operating cost relative to other airlines in India between 2013 and 2014. Yu et al ( 2019 ) have measured the airline efficiency in China and India using a dynamic network DEA approach during the period between 2008 and 2015.…”

Section: Literature Reviewmentioning

confidence: 99%

Evaluating sustainable efficiency of decision-making units considering undesirable outputs: an application to airline using integrated multi-objective DEA-TOPSIS

Omrani

Shamsi

Emrouznejad

2022

Environ Dev Sustain

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Sustainable development has gained significant attention in the literature due to the increased global awareness of environmental sustainability during the last decade. Sustainable development has three aspects, including economic, social, and environmental. The challenge of sustainable development is to establish a balance between these three aspects. Assessing the efficiency of a company contributes comprehensive information to improve its overall performance. Despite numerous studies in this field, the literature lacks studies that simultaneously consider all three aspects of sustainable development, especially the social aspect. The main objective of this paper is to calculate the technical, social, and environmental efficiency scores. We also introduce a new efficiency called sustainable efficiency that merges all three sustainable development aspects in one efficiency score. This study applies two existing data envelopment analysis (DEA) models to evaluate technical, social, environmental, and sustainable efficiencies. These models, namely the three-step method and the modified three-step method, are computationally intensive. Also, this paper introduces two new DEA models, namely the common weight goal programming DEA and the common weight DEA, to assess the efficiencies with much fewer computations. Each model produces results that are different from one another. Therefore, the TOPSIS approach is applied to provide an overall result by integrating the results obtained from the four presented models. For this purpose, the implementation of four TOPSIS models is required. To illustrate the capability and validity of the developed models in efficiency calculation, a case of Iranian airlines is presented. The selected airlines are evaluated in different aspects, and final results are obtained by applying TOPSIS. The findings show that using TOPSIS to combine the results of several DEA models leads to a fully ranking of airlines in four aspects of technical, social, environmental, and sustainable efficiencies. Also, it is recommended to managers to probe pairwise comparison between different efficiencies of airlines in order to find and improve the weak ones.

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Section: Literature Reviewmentioning

confidence: 99%

Evaluating sustainable efficiency of decision-making units considering undesirable outputs: an application to airline using integrated multi-objective DEA-TOPSIS

Omrani

Shamsi

Emrouznejad

2022

Environ Dev Sustain

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“…The DEA methodology (Charnes et al 1978 ) is a non-parametric linear programming method (see, for example, the works of Yuan and Liu 2020 ; Kularatne et al 2019 ; Soysal-Kur 2017 ; Yi and Lian 2015 ). In recent years, numerous studies have applied DEA for the study of tourism efficiency in various contexts: in hotel studies (Higuerey et al 2020 ; Lado-Sestayo and Fernández-Castro 2019 ; Karakitsiou et al 2018 ; Solana-Ibáñez et al 2016 ; Ohe and Peypoc, 2016 ; Manasakis et al 2013 ; Assaf et al 2012 ), in travel agencies (Dragan et al 2018 ; Ramírez-Hurtado and Contrera, 2017 ; ZhiYi 2015 ; Fuente 2011 ; Barros and Diek 2007 ), and in airlines (Shirazi and Mohammad, 2019 ; Yu et al 2019 ; Sakthidharan and Sivarama, 2018 ; Sing 2011 ; Barbot et al 2008 ). Parametric stochastic frontier methods (Aigner et al 1977 ; Meeusen and van den Broec 1977 ) are based on econometric models.…”

Section: Research Framework and Working Hypothesesmentioning

confidence: 99%

Evaluating the efficiency and determinants of mass tourism in Spain: a tourist area perspective

Sánchez-Sánchez

2022

Port Econ J

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Tourism is one of the fastest-growing economic sectors. This has piqued increasing interest in the evaluation of the performance of the sector. This paper joins this line of research by providing a potential framework for measuring efficiency in the context of a country such as Spain, where sun-and-sand tourism, usually associated with mass tourism, predominates. Tourist areas located on the coast provide the units of reference. Data Envelopment Analysis (DEA) is applied to determine the efficiency score and a Tobit-type model is employed to analyse the factors that determine efficiency. The results show that the impact of mass tourism on labour efficiency is geographically unequal, with the most efficient of the tourist areas located on the peninsular archipelagos. The analysis of the contribution of each input to the efficiency score reveals the pre-eminent role of tourism infrastructure as a lure for sun-and-sand tourism.

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“…The LCC in India have managed to achieve significant operational efficiencies with the rigid cost structure, heavy taxes, high landing and parking charges, undesirable regulatory factors (Saranga and Nagpal 2016 ). India’s low cost carriers show better scale efficiency vis-à-vis their full service competitors (Sakthidharan and Sivaraman 2018 ). Low Cost Airlines have been witnessed advantageous in utilizing their capacity compare to the full service airlines which strives hard to attain break-even capacity (Thirunavukkarasu 2015 ).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Airlines in India are vulnerable to high operating leverage (Sakthidharan and Sivaraman 2018 ). Operating leverage signifies an ability of a firm to use its fixed operating expenses to magnify the impact of change in its sales on its operating profit.…”

Section: Post-lockdown Challengesmentioning

confidence: 99%

Sustainability of airlines in India with Covid-19: Challenges ahead and possible way-outs

Agrawal

2020

J Revenue Pricing Manag

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Coronavirus outbreak has been highly disruptive for aviation sector, threatening the survival and sustainability of airlines. Apart from massive losses attributed to suspended operations, industry foresee a grim recession ahead. Restrictive movements, weak tourism, curtailed income, compressed commercial activities and fear psychosis are expected to compress the passenger demand from 30 to 60%, endangering the commercial viability of airlines operation. Fragile to withstand the cyclic momentary shocks of oil price fluctuation, demand flux, declining currency, airlines in India warrants for robust structural changes in their operating strategies, business model, revenue and pricing strategies to survive the long-lasting consequences of Covid-19. Paper attempts to analyze impact of lockdown and covid crisis on airlines in India and possible challenges ahead. Study also suggests the possible way-out for mitigating the expected losses.

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Impact of operating cost components on airline efficiency in India: A DEA approach

Cited by 19 publications

References 21 publications

Evaluating sustainable efficiency of decision-making units considering undesirable outputs: an application to airline using integrated multi-objective DEA-TOPSIS

Evaluating sustainable efficiency of decision-making units considering undesirable outputs: an application to airline using integrated multi-objective DEA-TOPSIS

Evaluating the efficiency and determinants of mass tourism in Spain: a tourist area perspective

Sustainability of airlines in India with Covid-19: Challenges ahead and possible way-outs

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