Airline Performance Assessment Framework

摘要

There is no clear definition of airline industry performance. Performance of airlines is measureddifferently from one study to another. Most common measurements used are those related tofinancial and/or non-financial performance. Past studies have considered each indicator ofperformance as one measure and different kinds of performance indicators have been introducedseparately in distinct models. These models have their own weaknesses in estimatingperformance. Therefore;;it is the aim of this study to introduce a latent variable that represent the“overall” airline performance. Furthermore;;it will identify factors that affect airline performance.These factors include economic condition;;internal operation;;airline capacity and airlinecapability and each of these factors is represented by a latent variable. The structuralrelationships between economic condition and airline performance;;and the roles of internaloperation;;airline capacity and capability are also discussed. In short;;this paper introduces a newand comprehensive framework in assessing airline performance based on available data in theannual report by the airlines.