The Operational Impacts of Governmental Restructuring of the Airline Industry in China

  • Scheraga C
  • 4

    Readers

    Mendeley users who have this article in their library.
  • 0

    Citations

    Citations of this article.

Abstract

In July 2000, the Civil Aviation Administration of China (CAAC) called for the consolidation of the 10 state-owned air carriers into three groups, headed by Air China, China Eastern, and China Southern. A few months later in November 2000, the State Council of China mandated that this consolidation be accomplished by the third quarter of 2001. As part of this mandate, the CAAC yielded its management control of air carriers with its focus now being on safety and regulatory issues. Furthermore, the CAAC was required to divest itself of assets held in many of the state-owned airlines and its interests in more than 120 airports around China, except Beijing Capital Airport. Utilizing data from the International Civil Aviation Organization for 2003 and 2004, this study investigates the operational impacts of this industry restructuring. The relative operational efficiency of Air China, China Eastern, and China Southern is compared to a sample of Asian, European and United States flag carriers. Data envelopment analysis is utilized to derive efficiency scores for individual airlines. The operational efficiency model used in this study is derived from that utilized by Schefczyk (1993). The underlying structural drivers of efficiency are then investigated via a tobit analysis with implications for managerial policy discussed.

Author-supplied keywords

  • Air Transportation L93
  • Choice of Technology O14
  • Industrialization
  • Industry Studies
  • Industry Studies: Utilities and Transportation: Go
  • Manufacturing and Service Industries
  • Population P23
  • Socialist Systems and Transitional Economies: Fact

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

  • Carl A Scheraga

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free