The Analysis of Technical Efficiency of Airlines in China

DOI

10.2991/meic-15.2015.352How to use a DOI?

Keywords

Technical Efficiency; Airlines; SFA; Cobb-Douglas; Regression Analysis

Abstract

In recent years, the airlines industry develops pretty fast. However, the profit of airlines does not match with the inputs. So the purpose of this paper is that evaluating how serious the problem is by measuring the technical efficiency of airlines in China with the Stochastic Frontier Analysis. We choose 6 airlines as the research samples due to their 86.68% market shares. After that we build a Cobb-Douglas production function regression model and measure the technical efficiency. The results are as follows: the technical efficiency of airlines in China by SFA and find out the average of it is in a medium level. However, the different airlines show different technical efficiency: the large airlines have higher technical efficiency but less increasing rate of technical efficiency than the small ones. Besides, the airline industry shows decreasing returns to scale, which means the output does not match the level of inputs. Finally, there is an inputs adding order to increase the output- capital, fuel and labor.

Copyright

© 2015, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yining Zhu
AU  - Xiuyun Yang
PY  - 2015/04
DA  - 2015/04
TI  - The Analysis of Technical Efficiency of Airlines in China
BT  - Proceedings of the 2015 International Conference on Mechatronics, Electronic, Industrial and Control Engineering
PB  - Atlantis Press
SP  - 1538
EP  - 1541
SN  - 2352-5401
UR  - https://doi.org/10.2991/meic-15.2015.352
DO  - 10.2991/meic-15.2015.352
ID  - Zhu2015/04
ER  -