Routes Performance Evaluating for Domestic Airlines by Data Envelopment Analysis

• Main Authors: Yen-Heng Chen, 陳彥蘅
• Other Authors: Yu-Chiun Chiou
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/4fuyee

碩士 === 逢甲大學 === 交通工程與管理所 === 91 === Since every distinct air route faces different customers, competitors and operating environments, its operating plans and management policies have better be proposed from a route-base view by treating it as a “strategic business unit”, not only from a whole-company view. Based on this, this study employed data envelopment analysis (DEA) to evaluate the performance of domestic air route in the aspects of cost-efficiency, cost-effectiveness and service-effectiveness for proposing the future planning directions for each route. A total of 15 routes operated by one domestic airline are chosen for research. There are 3 input variables, 2 production variables and 2 service variables being selected for evaluation. The major evaluation results are as follows: in the aspect of cost-efficiency, a total of 10 routes, such as TSA-KHH etc., are relatively efficient. Two routes, TSA-TXG and TSA-CYI, are scale inefficient with increasing returns to scale, so they have to decrease the operating cost. Three routes, such as TSA-TTT etc, are technical inefficient, so they have to monitor the operating cost more carefully. In the aspect of cost-effectiveness, a total of five routes, such as TSA-MZG etc., are relatively efficient. Six routes, such as TSA-KHH etc., are scale inefficient with increasing returns to scale, so they should reduce the operating cost. Three routes, such as CYI-MZG etc., are scale inefficient with decreasing returns to scale, so they should increase patronage. As to the route of TXG-MZG is technical inefficient, so it should monitor the operating cost more carefully. In the aspect of service-effectiveness, only four routes are relatively efficient. Four routes, such as TSA-KHH etc, are scale inefficient (decreasing returns to scale) and they should reduce number of freights or utilize smaller aircraft. Three routes, such as CYI-MZG etc, are scale inefficient (increasing returns to scale) and are suggested to increase the patronage. Four routes, such as TSA-TNN etc, are technical inefficient and they should carefully control the peak/off-peak seat sales management. A cluster analysis with three aspects’ efficiency values is conducted to divide 15 routes into four clusters. The first cluster composing of five offshore routes are highly efficient in all three aspects. The second cluster contains three offshore routes with the efficiencies maintaining above 0.9. It indicates that the operation of these routes have only to make a slight improvement. The third clusters containing two business, one recreational and two offshore routes are highly efficient in the aspect of cost-efficiency but less efficient in other two aspects. It shows that these routes face the problems of vigorous competition and insufficient patronage. Suitable modifications on marketing strategy and enhancement of customer service are needed for these routes. As to the fourth cluster, comprised by two business routes, are also high efficient in the aspects of cost-efficiency but they are rather low efficient in other two aspects. It indicates that these routes need more significant changes in operating directions. At last, this study also attempts to explore the differences of evaluating results caused by further incorporating the common cost. As a result, although the values of efficiencies of some routes do differ, there are no differences in determining that routes are efficient or not except only one route. According to this, we can perform the performance evaluation of domestic air route by only considering the attribute cost.