Benchmarking the Operating Performance of Asian Airlines

Abstract

This study benchmarks 14 major Asian airlines against one another using linear programming technique of data envelopment analysis (DEA). We evaluate the operating efficiencies of 14 Asian airlines for the period 2015 to 2019. The study finds that only three airlines have been consistently efficient relative to their peers in terms of their operating efficiency throughout the sample period. The DEA model uses well-performing airlines (efficiency of 1 or 100%) that are closest to the under-performing airline on the efficiency frontier as a “role model” (peer units) for the under-performing airline.