Publication: Measuring Global Airline Efficiency By Incorporating Innovation Capital, Co₂ Emissions, And Capacity Utilization Using A Data Envelopment Analysis Approach
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Date
2025-06
Authors
Rashid, Azwan Abdul
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Abstract
This thesis examines the efficiency, innovation capital, and sustainability of the global airline industry through three interrelated studies utilizing advanced data envelopment analysis (dea) frameworks. The first study introduces an effectiveness-based hierarchical dea (h-dea) method to construct an innovation capital index (inci) using a sample of 54 global airlines in 2017. Findings reveal that while airlines generally disclose moderate levels of innovation capital information (mean content analysis score of 21.778), the inci indicates a significant potential for improvement, with airlines, on average, having a 48% improvement opportunity (mean h-dea score of 0.520). Internal capital was identified as the primary factor contributing to underperformance, particularly in regions with low population growth rates such as oceania, while airlines in asia demonstrated better innovation capital performance. The flexible weighting structure of the proposed h-dea method enables airlines to target critical innovation capital categories, offering strategic insights for improvement.
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Measuring Global Airline Efficiency Incorporating Innovation