The relationship between airline performance and corporate governance amongst US Listed companies

The paper explores links between the operating performance of 30 airlines in the US and corporate governance. Initially data envelopment analysis is used to assess the relative efficiency of airlines and to investigate the contribution of inputs and outputs that affect technical efficiency. Efficiency decomposition combined with cluster analysis and multidimensional scaling is used to explore competitive advantage of airlines. Finally, the question of whether or not corporate governance affects the airlines’ performance is examined.

Research highlights
► The paper looks at efficiency in US airlines.
► It makes use of data envelopment analysis and various multivariate techniques look at the efficiency with which various factors of production are used.
► It finds that the corporate structure of an airline can affect its relative efficiency.