Efficiency Analysis Of Airlines Operation Based On SFA Method

With the rapid development of China’s economy, civil aviation of china is also developing rapidly. and becomes the second largest country after the United States air transport, but the domestic airline industry still lack of competitiveness in civil aviation transportation industry in the world. In recent years, the scale of the airlines in our country is more and more big, but achievement is not very ideal. So far, domestic airlines account for international freight market share less than 30%, accounting for international passenger traffic market share is only 50%. As the main part of the civil aviation, the airlines’healthy and stable development is related to the whole civil aviations’ future. Therefore, how to improve the operational efficiency of airlines is an important problem has practical significance.This paper analyze it by adopting the stochastic frontier analysis for domestically listed airlines (Air China、Southern Airlines、Eastern Airlines、Hainan Airlines、Shandong Airlines、 Shanghai Airlines) during the period of 2003-2014. Research conclusion of this paper mainly includes the following aspects:(1) Through the empirical study found the average technical and cost efficiency of six airlines’ are 0.6291 and 0.5263 between 2003 and 2014, which are at the medium level. The maximum of the technical efficiency of Air China (0.9481) is twice as much as the minimum of Shanghai Airlines (0.4227). Year average technical efficiency of Hainan Airlines growth was the fastest.(2) By comparing and analyzing Operation efficiency values can find that relatively small airlines’ efficiency value are more high, which of Hainan Airlines’ is the most high. This means that airlines operating efficiency is out of step with its size. Mainly because of uneven distribution of resources, the resources of the three airlines are more than Hainan Airlines, Shandong Airlines, Shanghai airlines, which aren’t fully configured and objectively form the waste of resources. To contrary, Hainan Airlines uses resources rationally and adopts efficient management, so efficiency is relatively high.(3) Through the qualitative analysis to factors that influence operation efficiency of airlines find that total assets, main business income, flight numbers, complaint rate and the GDP which in the headquarters of the of airlines have a positive impact to operating efficiency. Flight hours, state-owned stake, the number of planes and base, the exchange rate, and RTK are negatively related to the operation efficiency Therefore, increasing the airlines flight, controlling the number of flight hours, reducing state-owned shareholding, increasing the company’s private capital and diversifying ownership structure can improve the airlines’ operating efficiency.