The technical efficiency of US Airlines

This paper applies the BB-convex model in order to investigate the technical efficiency of a representative sample of US airlines over the period 1998–2010. The results are mixed and reveal that US airlines’ efficiency can be influenced by the size of the airline, mergers and acquisitions, and by time. Policy implications are derived.

► The B-convex model is used for the first time in the efficiency analysis of the air transport sector.
► This study concludes that US airlines display a reasonable level of efficiency.
► A benchmark is provided in order to upgrade the efficiency.