PRODUCTIVITY AND EFFICIENCY OF INTERNATIONAL AIRLINES

Authors

  • Antonio Henriques de Araujo Junior

Keywords:

Productivity, efficiency, air transport productivity

Abstract

This paper presents the published results of post-doctoral research conducted at the Brazilian Aeronautics Technological Institute (ITA), Brazil. The objective of this study is to evaluate the operational performance of the major Brazilian carriers during the period immediately following the deregulation of air transport in Brazil, comparing their performance with representative international counterparts. The process of deregulation of air transport in Brazil began in 2001 with the implementation of Law No. 10,365, known as the "Open Skies Law." This law allowed the entry of foreign airlines into the Brazilian domestic market and facilitated the operation of low-cost airlines. In this research, the aim was to compare the evolution of productivity and operational performance of full-service companies (FSC), regional airlines (RA), and low-fare/low-cost companies (LCC). The research concluded that Brazilian companies operating domestically demonstrated a productivity growth rate of 7.7% per year, surpassing the average of the sample. Additionally, the analysis revealed that low-cost companies exhibited superior operational performance compared to the full-service and regional airlines.

References

Alderighi, M., Cento, A., & Nijkamp, P. (2012). The Role of Low-Cost Carriers in Air Transport Markets. Journal of Air

Transport Management, 21, 3-13.

Airlines Annual Report (1991-1995). (n.d.). IATA, Paris.

Araujo Jr, A. H. (2004). Analysis of the Brazilian air transport productivity. Doctoral Thesis submitted to Escola Politécnica,

São Paulo University, São Paulo.

Araujo Jr, A. H. (2004). Evaluating the efficiency of Brazilian regional airlines. In Annals of the V SITRAER (Vol. 1, pp. 179-184).

Bitzan, J. D., & Peoples, J. H. (2007). The Effects of Airline Deregulation on Airline Efficiency and Productivity Growth.

Journal of Transport Economics and Policy, 41(2), 173-196.

Brueckner, J. K., & Whalen, W. J. (2000). The Effects of Deregulation on Airline Competition: The Experience of Continental

Airlines. Journal of Law and Economics, 43(2), 503-545.

Creamer, C. G. (1976). Multifactor productivity measurement. Journal of Business Economics, 55(1), 37-44.

Duke, J., & Torres, V. (2005). Multifactor productivity change in the air transportation industry. Monthly Labour Review,

March, 32-45.

Encaoua, D. (1991). Deregulating European Airlines. International Journal of Industrial Organisation, 9, 61-81.

Farrell, M. J. (1957). The measurement of productive efficiency. Journal of Royal Statistical Society Series A (General),

(2), 253-281.

Gaggero, A. A., & Piga, C. A. (2005). Deregulation and the Evolution of the Airline Industry. International Journal of

Industrial Organization, 23(5-6), 323-343.

Good, D. H., Nadiri, M. I., Roller, L. H., & Sickles, R. C. (1993). Efficiency and Productivity Growth Comparisons of European

and US Air Carriers: A First Look at the Data. The Journal of Productivity Analysis, 4, 115-125.

Kendrick, J. W. (1991). International comparisons of productivity and causes of the slowdown. American Economic

Review, 81(2), 61-66.

McKinsey Global Institute. (1992). Service Sector Productivity. Washington, D.C. McKinsey and Company, Inc.

McGowan, F., & Seabright, P. (1989). Deregulating European Airlines. Economic Policy, 9, 283-344.

Morrison, C. J., & Winston, C. (1995). Productivity Growth and Deregulation in the U.S. Airline Industry. Brookings Papers

on Economic Activity: Microeconomics, 1995(2), 113-182.

Moreira, D. A. (1994). Os benefícios da Produtividade Industrial. Editora Pioneira, São Paulo.

Statistical Report (1995/2005). (n.d.). Departamento de Aviação Civil, DAC, Rio de Janeiro.

Windle, R. J. (1991). The Worlds Airlines: cost and Productivity Comparison. Journal of Transport Economics and Policy,

January, 31-49.

Downloads

Published

2023-08-18

Issue

Section

Articles