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Table of Contents
Preface; Acknowledgements; Contents; About the Authors; Abbreviations; List of Figures; List of Tables; 1 Introduction to Efficiency and Competitiveness of International Airlines; Abstract; 1.1 Overview of the Airline Industry; 1.2 Background to Airlines' Competitiveness; 1.3 The Conceptual Framework; 1.4 The Objectives; 1.5 Data and Methodology; Appendix 1.1: US Carrier Exit and Entry Dates; Sec7; References; 2 Survey of Studies on Airlines and Their Efficiencies; Abstract; 2.1 Efficiency, Productivity, and Factor Use; 2.1.1 Stochastic Frontier Production and Cost Functions
2.1.2 Nonparametric Approaches2.1.3 Malmquist Productivity Analysis; 2.1.4 Other Performance Measurement Methods; 2.2 Alliance Formation and Market Liberalization; 2.3 Market Concentration, Market Power and Competition; 2.4 Other Issues; 2.5 The Conclusion; Appendix 2.1: Summary of Productivity and Efficiency Studies; References; 3 A Review of the Airline Industry; Abstract; 3.1 Terms Related to Air Transportation; 3.2 Industry Status; 3.3 Growth of the Airline Industry; 3.4 Cost Reduction; 3.5 Airline Industry's Central Role in Globalization; 3.6 Airlines' Impact on Related Industries
3.7 Issues of the Airline Industry3.8 Airlines' Performance; 3.8.1 The Factors Influencing Airlines' Performance; 3.8.2 Improving Performance Despite Difficult Conditions; 3.8.3 Productivity Enhancement; 3.8.4 Liberalization; 3.9 Other Issues; 3.10 Market Structure, Liberalization and Access; 3.10.1 Current Restrictions and Barriers; 3.11 Summary of the Airline Industry and Its Evolution; Appendix 3.1: The Chicago Convention; Appendix 3.2: Freedoms of the Air; Appendix 3.3: Abbreviations and Their Definitions; References
4 Stochastic Frontier Production Function Model Specification and Estimation ResultsAbstract; 4.1 Introduction; 4.2 Stochastic Frontier Production Function; 4.3 Model Specification; 4.3.1 The Error Components Specification; 4.3.2 The Technical Efficiency Effects Specification; 4.4 Data and Variables; 4.5 Estimation and Analysis of Results; 4.5.1 Analysis of the Estimation Results; 4.5.2 Airline Efficiency; 4.6 Summary and Conclusion; Appendix 4.1: Development of Different International Airline Production Efficiency, 1998-2012 (EC Model)
Appendix 4.2: Development of Different International Airline Production Efficiency, 1998-2012 (EE Model)Appendix 4.3: Alliance Memberships and Market Data; Appendix 4.4: Correlation Matrix of Production Frontier Model Variables; References; 5 Stochastic Frontier Cost Function Model Specification and Estimation Results; Abstract; 5.1 Introduction; 5.2 Model Specification; 5.3 Data and Variables; 5.3.1 Operating Costs; 5.3.2 Explanatory Variables; 5.3.3 Airlines' Characteristics; 5.4 Estimation and Analysis of Results; 5.4.1 Analysis of the Estimation Results; 5.4.2 Airline Efficiency
2.1.2 Nonparametric Approaches2.1.3 Malmquist Productivity Analysis; 2.1.4 Other Performance Measurement Methods; 2.2 Alliance Formation and Market Liberalization; 2.3 Market Concentration, Market Power and Competition; 2.4 Other Issues; 2.5 The Conclusion; Appendix 2.1: Summary of Productivity and Efficiency Studies; References; 3 A Review of the Airline Industry; Abstract; 3.1 Terms Related to Air Transportation; 3.2 Industry Status; 3.3 Growth of the Airline Industry; 3.4 Cost Reduction; 3.5 Airline Industry's Central Role in Globalization; 3.6 Airlines' Impact on Related Industries
3.7 Issues of the Airline Industry3.8 Airlines' Performance; 3.8.1 The Factors Influencing Airlines' Performance; 3.8.2 Improving Performance Despite Difficult Conditions; 3.8.3 Productivity Enhancement; 3.8.4 Liberalization; 3.9 Other Issues; 3.10 Market Structure, Liberalization and Access; 3.10.1 Current Restrictions and Barriers; 3.11 Summary of the Airline Industry and Its Evolution; Appendix 3.1: The Chicago Convention; Appendix 3.2: Freedoms of the Air; Appendix 3.3: Abbreviations and Their Definitions; References
4 Stochastic Frontier Production Function Model Specification and Estimation ResultsAbstract; 4.1 Introduction; 4.2 Stochastic Frontier Production Function; 4.3 Model Specification; 4.3.1 The Error Components Specification; 4.3.2 The Technical Efficiency Effects Specification; 4.4 Data and Variables; 4.5 Estimation and Analysis of Results; 4.5.1 Analysis of the Estimation Results; 4.5.2 Airline Efficiency; 4.6 Summary and Conclusion; Appendix 4.1: Development of Different International Airline Production Efficiency, 1998-2012 (EC Model)
Appendix 4.2: Development of Different International Airline Production Efficiency, 1998-2012 (EE Model)Appendix 4.3: Alliance Memberships and Market Data; Appendix 4.4: Correlation Matrix of Production Frontier Model Variables; References; 5 Stochastic Frontier Cost Function Model Specification and Estimation Results; Abstract; 5.1 Introduction; 5.2 Model Specification; 5.3 Data and Variables; 5.3.1 Operating Costs; 5.3.2 Explanatory Variables; 5.3.3 Airlines' Characteristics; 5.4 Estimation and Analysis of Results; 5.4.1 Analysis of the Estimation Results; 5.4.2 Airline Efficiency