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Title: Measuring the efficiency of European airlines: an application of DEA and Tobit Analysis
Authors: Fethi, Meryem Duygun
Jackson, Peter M.
Weyman-Jones, Thomas G.
First Published: 2000
Publisher: Efficiency and Productivity Research Unit, University of Leicester
Citation: Leicester, University of Leicester Efficiency and Productivity Research Unit, 2000
Abstract: The liberalisation movement in European airlines industry was initiated in the late 1980s to create a more competitive environment. This has aimed to result in an increase in efficiency and productivity of the industry. The radical changes which have occurred since then have given risen to the need to evaluate the efficiency in the early phases of the liberalisation process. This study utilises Data Envelopment Analysis (DEA) to assess the efficiency of airlines. The Tobit model applied to the second stage is conducted in an effort to identify the effects of various explanatory variables on efficiency. Applying DEA with Tobit models to detect the efficiency and the determinants of (in)efficiency serves a variety of policy purposes and aimed at improving performance. Our analysis is based on a panel data set of 17 airlines European airlines over the period of 1991-1995.
Series/Report no.: EPRU Discussion Papers
Type: Report
Description: The earlier version of this paper was presented at the 2000 Annual Meeting of the European Public Choice Society, Siena, Italy, 26-29 April, 2000. This paper is also available from the EPRU website at
Appears in Collections:Reports, School of Management

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