The impact of ICT on productivity of airline industry

Roya Gholami, Ali Emrouznejad, Henning Schmidt

Research output: Working paper

Abstract

Airline industry is at the forefront of many technological developments and is often a pioneer in adopting such innovations in a large scale. It needs to improve its efficiency as the current trends for input prices and competitive pressures show that any airline will face increasingly challenging market conditions. This paper has focused on the relationship between ICT investments and efficiency in the airline industry and employed a two-stage analytical investigation, DEA, SFA and the Tobit regression model. In this study, we first estimate the productivity of the airline industry using a balanced panel of 17 airlines over the period 1999–2004 by the Data Envelop Analysis (DEA) and the Stochastic Frontier Analysis (SFA) methods. We then evaluate the impacts of the determinants of productivity in the industry concentrating on ICT. The results suggest that regardless of all the negative shocks to the airline industry during the sample period, ICT had a positive effect on productivity during 1999-2004.
Original languageEnglish
Place of PublicationBirmingham (UK)
PublisherAston University
ISBN (Print)978-1-85449-731-4
Publication statusPublished - May 2008

Publication series

NameAston Business School research papers
PublisherAston University
No.RP0809

Fingerprint

Productivity
Airline industry
Airlines
Stochastic frontier analysis
Pioneers
Market conditions
Regression model
Industry
Innovation
Input prices
Tobit regression
Technological development

Keywords

  • ICT
  • airline
  • data envelopment analysis
  • network DEA
  • SFA

Cite this

Gholami, R., Emrouznejad, A., & Schmidt, H. (2008). The impact of ICT on productivity of airline industry. (Aston Business School research papers; No. RP0809). Birmingham (UK): Aston University.
Gholami, Roya ; Emrouznejad, Ali ; Schmidt, Henning. / The impact of ICT on productivity of airline industry. Birmingham (UK) : Aston University, 2008. (Aston Business School research papers; RP0809).
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Gholami, R, Emrouznejad, A & Schmidt, H 2008 'The impact of ICT on productivity of airline industry' Aston Business School research papers, no. RP0809, Aston University, Birmingham (UK).

The impact of ICT on productivity of airline industry. / Gholami, Roya; Emrouznejad, Ali; Schmidt, Henning.

Birmingham (UK) : Aston University, 2008. (Aston Business School research papers; No. RP0809).

Research output: Working paper

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AB - Airline industry is at the forefront of many technological developments and is often a pioneer in adopting such innovations in a large scale. It needs to improve its efficiency as the current trends for input prices and competitive pressures show that any airline will face increasingly challenging market conditions. This paper has focused on the relationship between ICT investments and efficiency in the airline industry and employed a two-stage analytical investigation, DEA, SFA and the Tobit regression model. In this study, we first estimate the productivity of the airline industry using a balanced panel of 17 airlines over the period 1999–2004 by the Data Envelop Analysis (DEA) and the Stochastic Frontier Analysis (SFA) methods. We then evaluate the impacts of the determinants of productivity in the industry concentrating on ICT. The results suggest that regardless of all the negative shocks to the airline industry during the sample period, ICT had a positive effect on productivity during 1999-2004.

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Gholami R, Emrouznejad A, Schmidt H. The impact of ICT on productivity of airline industry. Birmingham (UK): Aston University. 2008 May. (Aston Business School research papers; RP0809).