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Author:Färe, R.
Grosskopf, S.
Sickles, R.C.
Title:Productivity? of US airlines after deregulation
Journal:Journal of Transport Economics and Policy
2007 : JAN, VOL. 41:1, p. 93-112
Index terms:airlines
deregulation
productivity
USA
Language:eng
Abstract:This paper analyses a sample of airline companies examined by Alam and Sickles (200) and extended by Good, Sickles and Weiher (2005) to include an index of circuity as one of the measures of service quality of airline travel. An additional measure of quality of airline travel is timeliness and is measured by FAA data on the percentage of fligths that arrived on time. The two traditional outputs are scheduled and non-scheduled revenue passenger miles. It is found that accounting for characteristics such as circuity and percentage of flights on time does affect productivity. The findings confirm anecdotal accounts of a decline in airline service quality since deregulation, yielding in general lower rates of productivity growth in the sample when quality variables such as indirect routeing and delays are explicitly introduced into the technology.
SCIMA record nr: 263687
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