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Operational efficiency of ASEAN airlines: based on DEA and bootstrapping approaches

Jin-Li Hu (Institute of Business and Management, National Chiao Tung University, Taipei, Taiwan)
Yang Li (Institute of Business and Management, National University of Kaohsiung, Kaohsiung, Taiwan)
Hsin-Jing Tung (Institute of Business and Management, National Chiao Tung University, Taipei, Taiwan) (Institute of Transportation, Ministry of Transportation and Communications, Taipei, Taiwan)

Management Decision

ISSN: 0025-1747

Article publication date: 19 June 2017

Abstract

Purpose

For strategic and competitive insights, the purpose of this paper is to measure and benchmark the comparative operating efficiencies of Association of Southeast Asian Nations’ (ASEAN) major airlines and present a new interpretation along with managerial implications.

Design/methodology/approach

This research statistically tests returns to scale and the equality of mean efficiencies for 15 ASEAN airlines covering the period 2010-2014. The disaggregate input efficiency of ASEAN airlines is computed by comparing the target and actual inputs.

Findings

The disaggregate input efficiency of ASEAN airlines shows that aircraft efficiency is the lowest, operating cost efficiency is better, and available seat efficiency is the best.

Originality/value

This paper applies data envelopment analysis models, disaggregated input efficiency measures, and bootstrapping approaches to compute the operational efficiency of ASEAN airlines. Strategic suggestions are made to improve the operational efficiency of ASEAN airlines.

Keywords

Acknowledgements

The authors would like to thank the anonymous reviewers and the editor for their insightful comments and suggestions. Partial financial support from Taiwan’s Ministry of Science and Technology is gratefully acknowledged (MOST105-2410-H-009 -043).

Citation

Hu, J.-L., Li, Y. and Tung, H.-J. (2017), "Operational efficiency of ASEAN airlines: based on DEA and bootstrapping approaches", Management Decision, Vol. 55 No. 5, pp. 957-986. https://doi.org/10.1108/MD-07-2016-0489

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited