External shocks and efficiency changes in the US airline industry

Soo Cheong Jang; Kyuwan Choi; Kyuseok Lee

doi:10.1080/02642069.2010.504819

External shocks and efficiency changes in the US airline industry

Soo Cheong Jang
, Kyuwan Choi
, Kyuseok Lee

Research output: Contribution to journal › Article › peer-review

7 Citations (Scopus)

Abstract

The US airline industry has experienced severe turbulence during the recent decade. The September 11 terrorist attack (9/11) was the greatest shock at the beginning of the 2000s. Recently, the dramatic increase in fuel costs emerged as another shock to the industry. To understand the effects of these two major events, this study investigated the cross-sectional efficiency of the US airline industry and its changes using the data envelopment analysis technique. The primary findings suggest that 9/ 11 affected the network carriers (NCs) more severely than the low-cost carriers (LCCs), while fuel costs more seriously influenced the LCCs than the NCs.

Original language	English
Pages (from-to)	2411-2435
Number of pages	25
Journal	Service Industries Journal
Volume	31
Issue number	14
DOIs	https://doi.org/10.1080/02642069.2010.504819
Publication status	Published - Nov 2011

Bibliographical note

Funding Information:
We are grateful to Gary P. Akehurst (the Editor) and two anonymous referees for helpful, valuable comments. Kyuwan Choi acknowledges that this work was supported by a grant from the Kyung Hee University in 2008 (KHU-20081545).

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 16 Peace, Justice and Strong Institutions

Keywords

Airline industry
Data envelopment analysis
Efficiency
Fuel cost
September 11 terrorist attack (9/11)

Access to Document

10.1080/02642069.2010.504819

Cite this

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abstract = "The US airline industry has experienced severe turbulence during the recent decade. The September 11 terrorist attack (9/11) was the greatest shock at the beginning of the 2000s. Recently, the dramatic increase in fuel costs emerged as another shock to the industry. To understand the effects of these two major events, this study investigated the cross-sectional efficiency of the US airline industry and its changes using the data envelopment analysis technique. The primary findings suggest that 9/ 11 affected the network carriers (NCs) more severely than the low-cost carriers (LCCs), while fuel costs more seriously influenced the LCCs than the NCs.",

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AU - Choi, Kyuwan

AU - Lee, Kyuseok

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KW - Fuel cost

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External shocks and efficiency changes in the US airline industry

Abstract

Bibliographical note

UN SDGs

Keywords

Access to Document

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