Determinants of Profitability and Recovery from Shocks: the case of the U.S. domestic Airline Industry
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Date
2009-08-26T20:37:37Z
Authors
Wang, Jen-Hung Edward
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Publisher
University of Waterloo
Abstract
This paper examines the determinants of profitability using operations strategy, productivity, and service measures in the context of the U.S. domestic airline industry. Data on ten carriers was collected on a quarterly basis between 1995 and 2007. An analysis is performed separately on data prior and post 9/11 attack. It is found that operations strategy and productivity measures are significant both before and after the 9/11 attack, whereas service measures are only significant before 9/11. Some managerial implications are provided. Additionally, it is found that the profitability of full-service carriers is improving faster than low-cost carriers after 9/11.
Description
Keywords
U.S. Airline Operations Management, Cross-section Time Series, Operations Strategy, Service, Productivity