Comparative analysis of technical efficiency of Northeast Asia's major airline companies with stochastic frontier approach

초록

The purpose of this paper is to comparatively analyze the efficiency of major airline companies in Northeast Asia region during the period from 1990 to 2000. The efficiency of the airline companies is analyzed with the concept of technical efficiency. To estimate the technical efficiency of airline companies in Northeast Asia countries, SFA(stochastic frontier approach), the parametric approach, is applied. Labor, fuel and capital are used as the input factors, and output is divided into two cases, 'multiple output' and 'single output', considering the characteristics of the air transport service. Used data to estimate the efficiency are panel data of nine airline companies in Northeast Asia countries during the period of 1990-2000. The anticipated results are as follows; First, the inefficiency of the input during the period of 1990-2000 is estimated. And estimated inefficiency is used to compare nine companies. Second, the factors to affect the output performances of airline industry and the level of the effects are identified. Based on the results of empirical analysis, the implications to promote the competitiveness of the airline industry will be described.