Financial Efficiency Measurement in Airlines and Determining Factors of Efficiency

Abstract

The aim of the study is to compare airlines by carrying out measurement of efficiency of them obtaining different business models in terms of financial. The other aim is to reveal variables which have influence on score of efficiency. With this regard, airlines are separated into two groups, namely, traditional and low-cost airlines based on their business models. While the measurement of traditional and low-cost airlines efficiency was carried out with Data Envelopment Analysis, factors affecting efficiency scores of airlines were determined by Tobit regression model. According to the results of the study, airlines obtaining low-cost business model are more efficient than airlines obtaining traditional business model in terms of financial. Moreover, large-scale traditional airlines are more efficient than medium-scale traditional airlines. In terms of Tobit regression model, there are different results for two groups.