Investigating the effect of productivity, quality, and safety on profitability in the US airline industry

Mahour Mellat Parast, Elham H. Fini

Research output: Contribution to journalArticle

4 Scopus citations

Abstract

This study addresses the effect of productivity, quality, and safety on profitability in the US airline industry. Using data from 1989 to 2008 on airlines operations, we determine the inter-relationships between productivity, quality, and safety and their effect on profitability. Our analysis suggests that labour productivity is the main source of profitability in the US airline industry. The relationship between aircraft productivity and airline productivity appears to be significant, supporting the positive effect of technological advancement in the aircraft industry on profitability in the airline industry. On-time performance is not related to profitability, while service quality is directly related to profitability. Safety has a positive effect on productivity but it is not significantly related to profitability. Recommendations for future research are outlined at the end.

Original languageEnglish (US)
Pages (from-to)70-89
Number of pages20
JournalInternational Journal of Logistics Systems and Management
Volume10
Issue number1
DOIs
StatePublished - Aug 2011
Externally publishedYes

Keywords

  • Airline industry
  • Productivity
  • Profitability
  • Quality
  • Safety

ASJC Scopus subject areas

  • Management Information Systems
  • Management Science and Operations Research
  • Information Systems and Management

Fingerprint Dive into the research topics of 'Investigating the effect of productivity, quality, and safety on profitability in the US airline industry'. Together they form a unique fingerprint.

  • Cite this