EFFECTS OF AIRCRAFT LEASED/OWNED ON OPERATIONAL AND WEALTH-CREATION EFFICIENCIES

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dc.contributor.authorKweh, Qian Long
dc.contributor.authorTing, Irene Wei Kiong
dc.contributor.authorLu, Wen-Min
dc.contributor.authorLin, Cheng-Hsien
dc.date.accessioned2022-06-29T08:38:05Z
dc.date.available2022-06-29T08:38:05Z
dc.date.copyright© 2021
dc.date.issued2021-06
dc.description.abstractThis study examines the operational performance and wealth-creation efficiency of 22 global airlines over the period 2005-2017. That is, an airline efficiency evaluation model is proposed and assessed by employing a dynamic DEA model with network structure via a slacks-based measure approach. Moreover, this study performs a DuPont analysis and examines how leasing or owning aircraft in the airline industry explains airline efficiencies. Results corroborate that airlines with more owned aircraft relative to leased aircraft are more efficient than their counterparts in all aspects. DuPont analysis reveals that the former group of airlines' positive return on equity (ROE) on average is attributable to their higher net profit margin and asset turnover ratio, but lower equity multiplier compared with those of the latter group of airlines. The number of aircraft owned (leased) has a significantly positive (negative) effect on airline efficiencies. Taken together, this study offers empirical evidence for the relevance of change in accounting standard, particularly leasing in this study, in the transportation economics. Airlines should manage well not only their resources, but also their aircraft fleet deployment. In addition, this study points out the relevance of the textbook-based DuPont system in analyzing airlines' financial performance. © 2021 Fabrizio Serra Editore Srl. All rights reserved.
dc.identifier.citationKweh, Q. L., Ting, I. W. K., Lu, W. -., & Lin, C. -. (2021). EFFECTS OF AIRCRAFT LEASED/OWNED ON OPERATIONAL AND WEALTH-CREATION EFFICIENCIES. International Journal of Transport Economics, 48(2), 201-220. http://dx.medra.org/10.19272/202106702004
dc.identifier.issn03035247
dc.identifier.urihttp://dx.medra.org/10.19272/202106702004
dc.identifier.urihttp://hdl.handle.net/20.500.12519/678
dc.language.isoen_US
dc.publisherFabrizio Serra Editore Srl
dc.relationAuthors Affiliations : Kweh, Q.L., Faculty of Management, Canadian University, Dubai, United Arab Emirates; Ting, I.W.K., Faculty of Industrial Management, Universiti Malaysia, Pahang, Malaysia; Lu, W.-M., Department of International Business Administration, Chinese Culture University, Taiwan; Lin, C.-H., Department of Financial Management, National Defense University, Taiwan
dc.relation.ispartofseriesInternational Journal of Transport Economics; Volume 48, Issue 2
dc.rightsPermission to reuse abstract has been secured from Fabrizio Serra Editore Srl.
dc.rights.holderCopyright : © 2021 Fabrizio Serra Editore Srl. All rights reserved.
dc.subjectAircraft owned
dc.subjectAirline efficiency
dc.subjectDynamic network slacks-based measure
dc.subjectOperational performance
dc.subjectWealth-creation efficiency
dc.titleEFFECTS OF AIRCRAFT LEASED/OWNED ON OPERATIONAL AND WEALTH-CREATION EFFICIENCIES
dc.typeArticle
dspace.entity.type

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