Efficiency of selected airlines in India - DEA analysis
Student name: Ms Ranjana Sharma
Guide: Dr Kaushik Ranjan Bandyopadhyay
Year of completion: 2011
Host Organisation: The Energy and Resources Institute (TERI)
Supervisor (Host Organisation): Dr Subir Sen
Abstract: This paper attempts to present a discussion on the growth of the Indian aviation industries in the backdrop of recent changes in Govt. policies and enhancement of consumer disposal income. The main factor contributing in the growth of aviation industry is the booming economy of India, leading to growth in tourism industry and entry of low cost carriers in the aviation sector. In addition liberalization of international bi-lateral agreements and liberalization of civil aviation policy enhanced growth in aviation sector. With the exception of the worldwide economic slowdown in year 2008-09 and 20009-2010 , the passenger traffic over the next 12 yrs, as expected by Ministry of Finance Govt. of India, will reach to 31.66 crores by 2022-23 corresponding a growth (CAGR) rate of 8.44%. Growth in aviation sector brings competition in the industry with private entrants .Consequences is increase in number of airlines in market; this impact the performance of airlines. Hence this paper studies the changes in efficiency of selected operational airlines in India over the period of 2001-2009, by making use of non-parametric methodologies: Data Envelopment Analysis (DEA) and the DEA based Malmquist index: distance function approach. With DEA we also have done the comparison among these airlines try to find out the best performing airlines among them.
