Investigating the effect of productivity, quality, and safety on profitability in the US airline industry

Investigating the effect of productivity, quality, and safety on profitability in the US airline industry

0.00 Avg rating0 Votes
Article ID: iaor20119010
Volume: 10
Issue: 1
Start Page Number: 70
End Page Number: 89
Publication Date: Aug 2011
Journal: International Journal of Logistics Systems and Management
Authors: ,
Keywords: statistics: empirical, statistics: inference, datamining, statistics: regression
Abstract:

This study addresses the effect of productivity, quality, and safety on profitability in the US airline industry. Using data from 1989 to 2008 on airlines operations, we determine the inter‐relationships between productivity, quality, and safety and their effect on profitability. Our analysis suggests that labour productivity is the main source of profitability in the US airline industry. The relationship between aircraft productivity and airline productivity appears to be significant, supporting the positive effect of technological advancement in the aircraft industry on profitability in the airline industry. On‐time performance is not related to profitability, while service quality is directly related to profitability. Safety has a positive effect on productivity but it is not significantly related to profitability. Recommendations for future research are outlined at the end.

Reviews

Required fields are marked *. Your email address will not be published.