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 language | English (US) |
|---|---|
| Pages (from-to) | 70-89 |
| Number of pages | 20 |
| Journal | International Journal of Logistics Systems and Management |
| Volume | 10 |
| Issue number | 1 |
| DOIs | |
| State | Published - Aug 2011 |
| Externally published | Yes |
Keywords
- Airline industry
- Productivity
- Profitability
- Quality
- Safety
ASJC Scopus subject areas
- Management Information Systems
- Management Science and Operations Research
- Information Systems and Management