Evaluation of Brazilian airlines nonradial efficiencies and targets using an alternative DEA approach

This paper evaluates the operational performance of airlines using an alternative data envelopment analysis (DEA) approach. We start by calculating the relative efficiency of each firm with the classical DEA. After identifying the set of efficient airlines that could be used as benchmarks for the inefficient firms, we employ a nonradial efficiency measure based on vector concepts that considers each efficient airline as a real target at once. This allows the assessment of efficiency scores using other targets than those automatically derived by the classical DEA, traditionally built on radial measures of efficiency. Although the results indicate a large number of negative efficiency scores, for most inefficient airlines, it was possible to identify at least one real target whose corresponding score was positive. In addition, the methodology herein adopted enriches benchmarking analysis, as it provides a set of alternative targets easily understood and accepted by the managers involved in the decision process.