Volume 5: Innovative Solutions for Energy Transitions: Part IV

Integrated Airline Productivity Performance Evaluation With CO2 Emissions and Flight Delays Fei Huang, Dequn Zhou, Qunwei Wang

Abstract

This paper evaluates the airline productivity change by applying a modified global Malmquist productivity index (GMPI) model that incorporates both CO2 emissions and flight delays into the estimation model. Statistical inference is also performed on GMPI results using the bootstrapping method. Empirical research was conducted on 15 international airlines during 2011-2017. The empirical results showed the productivity of all airlines experienced a slight increase over 2011-2017. The results of GMPI and five driving factors of the 15 airlines were test to be reliable in most cases. Although efforts were made to restrain both CO2 emissions and flight delays, airline CO2 emission reduction was still inadequate to influence the productivity of airlines. Punctuality improvement did not facilitate overall productivity growth as expected. The additional cost paid by airlines to optimize their punctuality performance may not always lead to actual gains in productivity in the short term. Efficiency change and technological change were the major driving factors for the growth of airline productivity. Fifteen airlines had differed efficiency and technology features when considering the scale efficiency. Airlines need to choose targeted operational approaches to improve their productivity.

Keywords airline performance, global malmquist productivity index, airline CO2 emissions, flight delays