Testing Efficiency On Low Cost Carriers: An Application Of Robust Data Envelopment Analysis

Authors : Tüzün Tolga İNAN

Pages : 61-83

Doi:10.17494/ogusbd.595113

View : 14 | Download : 8

Publication Date : 2019-06-03

Article Type : Research Paper

Abstract :This research focuses on low cost carriers by comparing their efficiencies. In total, nine low cost carriers are gathered together for the years between 2003-2013. After designing the data which includes inputs and outputs to measure their efficiency, robustified data envelopment analysis is conducted year by year. Their efficiencies are calculated by listing as a path over time. Their efficiency scores are varied according to years as they are estimated with 1000 time iterated bootstrapped results of data envelopment analysis. First of all, results of variances over time are calculated. Secondly, their coefficient of variations (CV) are calculated too for k-means clustering algorithm. These calculated carriers are separated subgroups as: efficient and consistent, slightly efficient and slighty consistent, neither efficient nor consistent. After the parts of introduction, literature review, description of variable utilizations with methodology and data, the results according to the variables show that depends on assumptions returns to scale
Keywords : Low Cost Carriers, Robust Data Envelopment Analysis