Research Article
BibTex RIS Cite

Assessing The Impact of Airlines' Strategic Decisions in Fleet Planning on Profitability by Implementing Panel Data Analysis

Year 2023, Issue: 8, 15 - 21, 31.12.2023

Cem Ersöz Hüseyin Önder Aldemir

https://doi.org/10.52693/jsas.1393069

Abstract

Bu çalışma, havayolu şirketlerinin uçuş operasyonları için stratejik bir karar olarak seçtikleri farklı uçak tiplerinin havayolu karlılığı üzerindeki etkisini araştırmaktadır. Veri setleri, 2015-2019 yılları arasındaki beş yıllık dönem için ABD'de faaliyet gösteren on havayolu şirketi için MIT Havayolu Veri Projesi'nden toplanmıştır. Uçak tiplerinin (küçük dar gövdeli, büyük dar gövdeli ve geniş gövdeli) kârlılık üzerindeki etkilerini incelemek için Havuzlanmış, Sabit Etkiler ve Rassal Etkiler olmak üzere üç farklı panel veri modeli kullanılmıştır. Panel veri modellerini oluşturmak için R dilinin plm paketi kullanılmıştır. Sonuç olarak, Sabit Etkiler Panel Veri Modeli, tüm veri setlerinde kâr değişkenliğini açıklamada en başarılı model olarak ortaya çıkmıştır. Havayolu karlarını belirleyen değişkenler havayolu özelliklerine göre değişmektedir ve zamana bağlı değildir.

Keywords

Havayolu karlılık uçak tipi stratejik yönetim strateji panel veri modeli

References

  • [1] F. Yiğit and İ. Canöz, “Avrupa’daki̇ Hava yolu pay Senetleri̇ni̇n covid-19 pandemi̇si̇ne tepki̇si̇: Olay çalişmasi metodolojisi,” İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi, vol. 19, no. 39, pp. 1309–1326, 2020. doi:10.46928/iticusbe.831057
  • [2] Semeriahina, M., Hryhorak, M., & Bugayko, D. (2021). The Analysis of the Impact of Business Process Outsourcing on the Profitability of Commercial Airline in the Conditions of a Global Pandemic. Logistics and Transport, 49(1), 31-45.
  • [3] Massachusetts Institute of Technology (MIT) (2020). Airline Data Project- Aircraft and Related Retrieved from https://web.mit.edu/airlinedata/www/Aircraft&Related.html
  • [4] Antoniou, A. (1992). The Factors Determining the Profitability of International Airlines: Some Econometric Results. Managerial and Decision Economics, 13, 503-514.
  • [5] Parast, M. M., & Fini E. H. (2010). The effect of productivity and quality on profitability in US airline industry-An empirical investigation. Managing Service Quality, 20(5), 458-474.
  • [6] Xu X., McGrory, C.A., Wang, Y.G., & Wu, J. (2021). Influential factors on Chinese airlines’ profitability and forecasting methods. Journal of Air Transport Management, 91, 101969.
  • [7] Kiracı, K. (2020). The Factors Determining the Profitability of Low Cost Airlines. Romanian Statistical Review, 1, 41-53.
  • [8] O'Connell, J.F., Avellana, R.M., Warnock-Smith, D., & Efthymiou, M. (2020). Evaluating drivers of profitability for airlines in Latin America: A case study of Copa Airlines. Journal of Air Transport Management, 84, 101727.
  • [9] Merkert, R., & Pearson, J. (2015). A Non-parametric Efficiency Measure Incorporating Perceived Airline Service Levels and Profitability. Journal of Transport Economics and Policy, 49(2), 261–275.
  • [10] Kalemba, N., & Campa-Planas, F. (2017). The Quality – Profitability Link in the US Airline Business: A Study Based on the Airline Quality Rating Index. Procedia Engineering, 187, 308-316.
  • [11] Kalemba, N., & Campa-Planas, F. (2018). The quality effect on the profitability of US airline companies. Tourism Economics, 24(3), 251-269.
  • [12] Douglas, I., & Tan, D. (2017). Global airline alliances and profitability: A difference-in-difference analysis. Transportation Research Part A, 103, 432–443.
  • [13] Zou, L., & Chen, X. (2017). The effect of code-sharing alliances on airline profitability. Journal of Air Transport Management, 58, 50-57.
  • [14] Scotti, D., & Volta, N. (2017). Profitability change in the global airline industry. Transportation Research Part E, 102, 1-12.
  • [15] Huang, C.C., Hsu, C.C., & Collar, E. (2021). An Evaluation of the Operational Performance and Profitability of the U.S. Airlines. International Journal of Global Business and Competitiveness, 16, 73–85.
  • [16] Jin, L., Mott, J., Yang, C., & Lu, C. (2022). A Panel Study of Outsourced Maintenance Impact on Major U.S. Passenger Airlines' Profitability (1995-2019). Journal of Aviation/Aerospace Education & Research, 31(2), 1-32.

Assessing The Impact of Airlines' Strategic Decisions in Fleet Planning on Profitability by Implementing Panel Data Analysis

Year 2023, Issue: 8, 15 - 21, 31.12.2023

Cem Ersöz Hüseyin Önder Aldemir

https://doi.org/10.52693/jsas.1393069

Abstract

This study investigates the impact on airline profitability of different types of aircraft that airlines choose as a strategic decision for their flight operations. Dataset were gathered from MIT Airline Data Project for ten airlines operating in the USA for five-year period between 2015-2019. Three different panel data models- Pooled, Fixed Effects, and Random Effects- were employed to examine the effects of aircraft types (small narrow-body, large narrow-body, and wide-body) on profitability. Plm package of R language was used to create panel data models. As a conclusion, Fixed Effects Panel Data Model proved to be the most successful in explaining profit variation in all dataset. Variables determining airline profits change according to the airline specifications and are not time-dependent.

Keywords

Airline profitability aircraft type strategic management strategy panel data model

References

  • [1] F. Yiğit and İ. Canöz, “Avrupa’daki̇ Hava yolu pay Senetleri̇ni̇n covid-19 pandemi̇si̇ne tepki̇si̇: Olay çalişmasi metodolojisi,” İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi, vol. 19, no. 39, pp. 1309–1326, 2020. doi:10.46928/iticusbe.831057
  • [2] Semeriahina, M., Hryhorak, M., & Bugayko, D. (2021). The Analysis of the Impact of Business Process Outsourcing on the Profitability of Commercial Airline in the Conditions of a Global Pandemic. Logistics and Transport, 49(1), 31-45.
  • [3] Massachusetts Institute of Technology (MIT) (2020). Airline Data Project- Aircraft and Related Retrieved from https://web.mit.edu/airlinedata/www/Aircraft&Related.html
  • [4] Antoniou, A. (1992). The Factors Determining the Profitability of International Airlines: Some Econometric Results. Managerial and Decision Economics, 13, 503-514.
  • [5] Parast, M. M., & Fini E. H. (2010). The effect of productivity and quality on profitability in US airline industry-An empirical investigation. Managing Service Quality, 20(5), 458-474.
  • [6] Xu X., McGrory, C.A., Wang, Y.G., & Wu, J. (2021). Influential factors on Chinese airlines’ profitability and forecasting methods. Journal of Air Transport Management, 91, 101969.
  • [7] Kiracı, K. (2020). The Factors Determining the Profitability of Low Cost Airlines. Romanian Statistical Review, 1, 41-53.
  • [8] O'Connell, J.F., Avellana, R.M., Warnock-Smith, D., & Efthymiou, M. (2020). Evaluating drivers of profitability for airlines in Latin America: A case study of Copa Airlines. Journal of Air Transport Management, 84, 101727.
  • [9] Merkert, R., & Pearson, J. (2015). A Non-parametric Efficiency Measure Incorporating Perceived Airline Service Levels and Profitability. Journal of Transport Economics and Policy, 49(2), 261–275.
  • [10] Kalemba, N., & Campa-Planas, F. (2017). The Quality – Profitability Link in the US Airline Business: A Study Based on the Airline Quality Rating Index. Procedia Engineering, 187, 308-316.
  • [11] Kalemba, N., & Campa-Planas, F. (2018). The quality effect on the profitability of US airline companies. Tourism Economics, 24(3), 251-269.
  • [12] Douglas, I., & Tan, D. (2017). Global airline alliances and profitability: A difference-in-difference analysis. Transportation Research Part A, 103, 432–443.
  • [13] Zou, L., & Chen, X. (2017). The effect of code-sharing alliances on airline profitability. Journal of Air Transport Management, 58, 50-57.
  • [14] Scotti, D., & Volta, N. (2017). Profitability change in the global airline industry. Transportation Research Part E, 102, 1-12.
  • [15] Huang, C.C., Hsu, C.C., & Collar, E. (2021). An Evaluation of the Operational Performance and Profitability of the U.S. Airlines. International Journal of Global Business and Competitiveness, 16, 73–85.
  • [16] Jin, L., Mott, J., Yang, C., & Lu, C. (2022). A Panel Study of Outsourced Maintenance Impact on Major U.S. Passenger Airlines' Profitability (1995-2019). Journal of Aviation/Aerospace Education & Research, 31(2), 1-32.
There are 16 citations in total.

Details

Primary Language English
Subjects Finance and Investment (Other)
Journal Section Research Articles
Authors

Cem Ersöz 0000-0001-8010-5205

Hüseyin Önder Aldemir 0000-0002-8083-0447

Publication Date December 31, 2023
Submission Date November 19, 2023
Acceptance Date December 31, 2023
Published in Issue Year 2023 Issue: 8

Cite

IEEE C. Ersöz and H. Ö. Aldemir, “Assessing The Impact of Airlines’ Strategic Decisions in Fleet Planning on Profitability by Implementing Panel Data Analysis”, JSAS, no. 8, pp. 15–21, December 2023, doi: 10.52693/jsas.1393069.
 Download Cover Image