Impacton Operational Efficiency Of Threemajor Private Airlines With Respect To Indian Aviation Industry

2019 ◽  
Vol 118 (2) ◽  
pp. 108-123
Author(s):  
Sreelakshmi. G ◽  
. P. Balasubramanian
Keyword(s):  
Economic Growth ◽  
Financial Performance ◽  
Low Cost ◽  
Operational Efficiency ◽  
Aviation Industry ◽  
Data Envelopment ◽  
Ratio Analysis ◽  
Output Factor ◽  
Low Cost Carriers ◽  
Efficiency Data

The Aviation industry is one of the largest industries that is contributing to the economic growth of a nation.This industry has gone through various stages like de-regulation, privatization,emergence of Low Cost Carriers etc. This paper focuses on analyzing the financial performance and operational efficiency (te) of three major private airlines in India namely Indigo Airlines, Jet Airways and Spice Jet.For analysing the financial performance the technique of ratio analysis has been used and for analyzing the operational efficiency Data Envelopment Analysis (DEA) has been used. This study has used VRS model of DEA by taking into account two input factors and one output factor. On the basis of the factors considered it has been observed that operational efficiency of Jet Airways is better compared to other two airlines.

scholarly journals Effectiveness of National Airlines in Europe – the DEA Approach

2016 ◽  
Vol 16 (2) ◽  
pp. 103-118 ◽  
Author(s):  
Agata Żółtaszek ◽  
Renata Pisarek
Keyword(s):  
Low Cost ◽  
Air Transport ◽  
Competitive Environment ◽  
Load Factor ◽  
Data Envelopment ◽  
Eu Member States ◽  
Analysis Methodology ◽  
Low Cost Carriers ◽  
Dea Approach ◽  
Regional Airports

Abstract National airlines operate in a highly competitive environment. EU airlines face a challenge to compete with low cost carriers, as a result of the liberalization process in the sector. European flag airlines of non-EU member states, not benefiting from liberalization, are forced to compete internationally. This research is focused on national carriers, as they provide the majority of service to and from central and regional airports. Therefore, to establish the most efficient entities on the passenger air transport market, DEA (Data Envelopment Analysis) methodology, has been utilized. The purpose of this paper is to evaluate the effectiveness of 29 chosen national airlines in Europe in the year 2013, using the DEA approach, to pinpoint the subset of fully-efficient market leaders, as well as potential sources of inefficiency, among less effective carriers. The analysis incorporates information on inputs (e.g. fleet, number of employees, number of countries and airports served) and outputs (revenue, annual passengers carried, load factor). The results show that more than 40% (12 of 29) researched airlines are effective and the other 34% are near-efficient. Moreover, outcomes suggest that “going big” may not increase effectiveness. It is harder to achieve full efficiency for big carriers than small ones.

Evaluating and Exploring Successful Disruptive Innovation in the Aviation Industry From the Perspective of Consumers

2021 ◽  
Vol 13 (4) ◽  
pp. 105-119
Author(s):  
Gang-Hoon Seo
Keyword(s):  
Word Of Mouth ◽  
Low Cost ◽  
Disruptive Innovation ◽  
Point Of View ◽  
Aviation Industry ◽  
Basic Service ◽  
Low Cost Carriers ◽  
Content Analyses ◽  
Southwest Airlines

Since Southwest Airlines' disruptive innovation was introduced, low-cost carriers (LCCs) have had a prominent impact on the aviation industry. Therefore, considerable attention has been paid to the LCC model. However, it is still not clear whether it is a successful disruptive innovation, or what factors and differentiation points for successful LCC service exist from the passengers' perspective. As this study's methodology, quantitative and qualitative content analyses are conducted using the word-of-mouth data of 1,854 passengers of 20 airlines. This study found that the LCC model is perceived as a successful disruptive innovation from the passengers' point of view. For successful LCC service, LC airlines should offer higher quality services than passengers' expectations using basic service elements. Also, good staff characteristics, leaving a professional impression, and providing good optional services could play a role as differentiation tools.

scholarly journals The Performance Analysis of Beibu Gulf airlines Based on DEA Model during the Pre-COVID-19 Pandemic Period

CONVERTER ◽  
2021 ◽  
pp. 230-235
Author(s):  
Yichia Lin, Wenlung Chang, Wongchai Anupong, Bowen Long
Keyword(s):  
Data Envelopment Analysis ◽  
Low Cost ◽  
Spare Parts ◽  
Aviation Fuel ◽  
Operational Performance ◽  
Civil Aviation ◽  
Aviation Industry ◽  
Beibu Gulf ◽  
Data Envelopment ◽  
Dea Model

During the COVID-19 pandemic period, all airlines experienced a severe impact and the route operating cost is very susceptible to the impact of flight duration and aviation fuel prices. This paper analyzes the operation performance of Beibu Gulf airlines (low cost airline company) with data envelopment analysis CCR model in pre-COVID-19 pandemic period. Under the domestic vigorous promotion of tourism development and people's huge demand for travel, the airlines in mainland China continue rapid development, which accelerates the emergence of local airlines other than the four major airlines and leads to increasingly fierce operation competition in the civil aviation industry. Behind the competition among airlines, the operational performance of airlines can best reflect the company's development status. In this context, airlines should choose appropriate operational strategies to strengthen its competitiveness and operational capabilities. The DEA model is a mature input-output research tool, and there have been many studies related to operational performance of the aviation industry. By using Data Envelopment Analysis (DEA) solver software, the input and output indicators from 2017 to 2019 are analyzed. Preliminary results show that routes and oil price factors have not reached effective status. Beibu Gulf Airlines gradually shifts to low-cost mode, the faced challenges are as follows: 1. The competition among domestic low-cost airlines; 2. The current poor overall service quality of low-cost airlines as evaluated by customers; 3. How to arrange routes, flight, service strategy, etc. Airbus uses enhanced aviation systems for this series of aircraft to improve the overall reliability of the aircraft, reduce maintenance and spare parts costs, thus helping airlines greatly reduce maintenance costs, which is very beneficial to low-cost airlines. Based on this, this paper puts forward some suggestions, such as optimizing routes, developing feeder flights in second tier cities of popular destinations, controlling fuel costs, making low-cost aviation fuel reserves, reducing the weight of passengers' carry-on luggage or charging additional baggage charges.

scholarly journals Low-Cost Carriers – Business Model Development

2015 ◽  
Vol 3 (1) ◽  
pp. 1-5
Author(s):  
Antonín Kazda ◽  
◽  
Mária Mrázová
Keyword(s):  
Business Model ◽  
Business Models ◽  
Low Cost ◽  
Model Development ◽  
Aviation Industry ◽  
Historical Evolution ◽  
Financial Benefits ◽  
Low Cost Carriers ◽  
Business Model Development

This paper deals with low-cost airline business model that has overwhelmingly been the favoured mode of the airline. Fast-changing aviation industry forces low-cost carriers to transform their initial business model and therefore, author stresses further opportunities for the expansion of these models to another direction with more concentration on customer ´s needs as well as company´s operational and financial benefits. One of the most important partial results is analysis of existing low-cost carrier’s business models, describe their historical evolution and propose future modifications to stay competitive and profitable.

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