Impact of operational performance on air carrier cost structure: Evidence from US airlines
نویسندگان
چکیده
The impact of operational performance on airline cost structure is empirically investigated using an aggregate, statistical cost estimation approach. Two distinct sets of operational performance metrics are developed and incorporated into the airline cost models as arguments. Results from estimating a variety of airline cost models reveal that both delay and schedule buffer are important cost drivers. We also find that flight activity outside schedule windows increases cost, whereas flight inactivity within schedule windows does not. Using the estimated cost models, we predict the cost savings to airlines of ‘‘perfect’’ operational performance, obtaining an estimate in the range of $7.1–13.5 billion for 2007. 2012 Elsevier Ltd. All rights reserved.
منابع مشابه
Do Bags Fly Free? An Empirical Analysis of the Operational Implications of Airline Baggage Fees
In 2008, the majority of U.S. airlines began charging first for one, and then, two checked bags. One of the often cited reasons for this action by the airlines’ executives was that this would influence customers to travel with less baggage and thus improve cost and operational performance. A notable exception to the charging for checked bags trend was Southwest Airlines, who turned their resist...
متن کاملAn integrated decision support tool for airlines schedule recovery during irregular operations
This paper presents a decision support tool for airlines schedule recovery during irregular operations. The tool provides airlines control centers with the capability to develop a proactive schedule recovery plan that integrates all flight resources. A rolling horizon modeling framework, which integrates a schedule simulation model and a resource assignment optimization model, is adopted for th...
متن کاملA Comparative Analysis of Information Technology Strategy in American Airlines and French Railways (France)
In choosing the computerised reservation system Sabre, French Railways was hoping to benefit from the same strategic advantage this technology brought to American Airlines during the deregulation of US air transport in the 80s. However, the adoption of a new transport distribution model based on the deregulated US air industry proved to be controversial, leading to implementation problems. The ...
متن کاملService quality and productivity in the U.S. airline industry: a service quality-adjusted DEA model
The airline industry faces economic challenges making it paramount that they provide satisfactory service to customers relative to their expectations. This study uses a service quality-adjusted data envelopment analysis (SQ-adjusted DEA) to study US-based airline carrier operational efficiency. We found that airlines can overcome the traditional tradeoff between quality and productivity. Using ...
متن کاملAn airline's management strategies in a competitive air transport market
Over the last decade, the demand for domestic and international flights in Korea has increased substantially. To meet the strong flight demands, several low cost carriers have begun to offer flight services. In addition, full service carriers have been motivated to establish their own subsidiary low cost carriers to maintain their market share against rival low cost carriers. This paper studies...
متن کامل