Preview

Aircraft Maintenance Efficiency

Powerful Essays
Open Document
Open Document
5591 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Aircraft Maintenance Efficiency
Transpn Res.-A, Vol. 32, No. 4, pp. 261±269, 1998
# 1998 Elsevier Science Ltd. All rights reserved
Printed in Great Britain
0965-8564/98 $19.00+0.00

Pergamon
PII: S0965-8564(97)00013-X

12 3

ASSESSING THE RELATIVE EFFICIENCY OF AIRCRAFT
MAINTENANCE TECHNOLOGIES: AN APPLICATION OF DATA
ENVELOPMENT ANALYSIS
MILO W. PECK, JR.

Department of Accounting, Fair®eld University, Fair®eld, CT 06430, U.S.A.

CARL A. SCHERAGA*

Department of Management, Fair®eld University, Fair®eld, CT 06430, U.S.A.

and
RUSSELL P. BOISJOLY

Dean and Department of Finance, School of Business, Fair®eld University, Fair®eld, CT 06430, U.S.A.
(Received 17 October 1996; in revised form 04 March 1997)
AbstractÐThis study focuses on discretionary maintenance strategies and their relationship to aircraft reliability, as measured by the percentage of scheduled ¯ights delayed because of mechanical problems. The methodology of Data Envelopment Analysis is employed to identify the various strategies employed by the major airlines over the time period 1990±1994. Additionally, this methodology allows for a normative assessment as to which strategies are relatively ecient. Furthermore, the speci®c strategies utilized by ecient and inecient airlines can be compared at a micro-level and thus quanti®able recommendations for the latter group can be suggested. # 1998 Elsevier Science Ltd. All rights reserved
1. INTRODUCTION

There has been much concern of late that rising costs and shrinking pro®t margins may have undesirable e€ects on the ability of airlines to maintain acceptable levels of safety performance.
Speci®cally, such concern calls into question discretionary managerial strategies on the part of airline executives with regard to the performance of aircraft maintenance. The researcher is challenged to identify and quantify those discretionary strategies most likely to impact ®rm and industry levels of maintenance e€ectiveness. Furthermore, once the array of



References: Ali, A. and Seiford, L. (1993) The mathematical programming approach to e ciency analysis. In The Measurement of Productive E ciency: Techniques and Applications, eds H Barnett, A. and Higgins, M. (1989) Airline safety: the last decade. Management Science 35 (1), 1±21. 1 Consulting (1995) Integrated Data Envelopment Analysis System: Version 5.1. Amherst, MA. Oster, C. V., Jr. and Zorn, C. K. (1989) Airline deregulation: is it still safe to ¯y? In Transportation Safety in an Age of Deregulation, eds L Rose, N. L. (1989) Financial in¯uences on airline safety. In Transportation Safety in an Age of Deregulation, eds L. Moses and I Rose, N. L. (1992) Fear of ¯ying? economic analyses of airline safety. Journal of Economic Perspectives 6 (2), 75±94. U.S. Department of Transportation (1990±1994) Air Travel Consumer Report, O ce of Consumer A€airs, Washington, DC. U.S. Department of Transportation (1990±1994) Data Bank 28DS: T-100 Domestic Segment Data. O ce of Airline Statistics, Data Administration Division DAI-20, Washington, DC. U.S. Department of Transportation (1990±1994) Form 41 Financial: Data Bank 10. O ce of Airline Statistics, Data Administration Division DAI-20, Washington, DC. The analysis in this study employed the input-oriented data envelopment model as speci®ed by Ali and Seiford (1993).

You May Also Find These Documents Helpful

  • Powerful Essays

    In June of 1956, when two avoidable air tragedies in a 12 day period claimed 202 lives, a subsequent investigation found that air travel was unsafe because we had let the air traffic control system become “outmoded and overloaded.” As a result, in 1958,…

    • 1580 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Similarly, the economic issues in the industry are also mostly concerned with deregulation. The evolution of industry structure plays an important role in determining the robustness and stability of lower airfares in unregulated markets (2000). Deregulation also keeps airline fares so low as compared to that of other countries. The reason for this is because despite the failure of most entrants since deregulation, investors continue to create new airlines. There is substantial evidence that entry, particularly by low-cost, low-fare airlines, has a substantial effect in constraining fare levels in markets served by the new carriers (2000). The second reason is that some in the industry have argued that financially marginal carriers may act in ways that depress prices below competitive levels, inducing contagion in financial distress (2000). In addition, some industry participants have argued that financially distressed carriers have cut prices in an effort to raise short-term cash, depressing market prices below efficient levels and threatening the financial security of healthy carriers. Another economic concern is the fact that the airline economy of the US is in a huge upset after the September 11 attack. Some of the companies declared bankruptcy while others are still struggling to survive (2003).…

    • 1897 Words
    • 8 Pages
    Good Essays
  • Best Essays

    Mkt 571 Week 3

    • 2520 Words
    • 11 Pages

    University of Phoenix (B). (2012). Classic Airlines Documents. Retrieved from the University of Phoenix MKT 571 Marketing E-Resource Link.…

    • 2520 Words
    • 11 Pages
    Best Essays
  • Better Essays

    Over 80 years of regulation by the ICC, the railroads industries were in major financial crisis and being feared that the airlines industries were going to have the same problems, hence rising the reason to deregulate the airlines industries (Lawrence, 2013). The CAB Procedures and…

    • 1412 Words
    • 6 Pages
    Better Essays
  • Good Essays

    A large effect from 9/11 was an increase in the security aspects when it relates to aviation, when at the time America was fairly lackluster. There were many things you were able to do and get away with, that are completely unheard of nowadays. Then after this incident was a kick in the face for us here in America especially for us to make leaps in bounds when it comes to security. ”America’s involvement in the War on Terror — prompted…

    • 659 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    9/11 and Airport Security

    • 3569 Words
    • 15 Pages

    Taylor, Alycia B., and Sarah Steedman. "The Evolution of Airline Security Since 9/11." Security Training. CPO, Dec. 2003. Web. 20 Feb. 2012. <http://ifpo.org/articlebank/evolution_of_airline.html>.…

    • 3569 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    9/11 Case Study

    • 801 Words
    • 4 Pages

    Ward, Rodney. September 11 and the Restructuring of the Airline Industry. 2002. Source: http://dollarsandsense.org/archives/2002/0502ward.html. Accessed on [October 5,…

    • 801 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Steven A. Morrison and Clifford Winston, "The Remaining Role for Government Policy in the Deregulated Airline Industry", in Deregulation of Network Industries: What 's Next, edited by S. Peltzman and C. Winston, Washington, D.C., AEI-Brookings Joint Center for Regulatory Studies, 2000.…

    • 1572 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Statistics are used to provide useful information about the airline industry to both the consumer and the airline industry. Decisions can then be based on this information. A table displaying the percentage of air carrier delays within the carrier’s control could be used as a benchmark to compare one carrier’s performance to that of its…

    • 366 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Qantas Strat Mgt

    • 2601 Words
    • 11 Pages

    In light of the 9/11 attack on the World Trade Centre in the US, the US government issued “The Aviation and Transportation Security Act” which included new safety measures which could make traveling harder (Datamonitor, 2007). With roughly 9% of Qantas’s revenue coming from their flights to US/Canada it may affect the company’s future revenue (Datamonitor, 2007). The Australian government have introduce tighter control due to the 9/11 attack, which has “brought about dramatic drop in passenger volume” and thus one of the many challenges Qantas faces (Quamrul, 2007).…

    • 2601 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Airline Deregulation

    • 1063 Words
    • 5 Pages

    The results of airline deregulation speak for themselves. Since the government got out of the airline business, not only has there been a drop in prices and an increase in routes, there has also been a remarkable increase in airline service and safety. Airline deregulation should be seen as the crowning jewel of a federal de-regulatory emphasis. Prices are down: Airline ticket prices have fallen 40% since 1978. Flights are up: The number of annual departures is up from 5 million in 1978 to 8.2 million in 1997. Flights are safer: Before deregulation, there was one fatal accident per 830,000 flights, now the rate is one per 1.4 million flights. So what's the problem?…

    • 1063 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Fryer Airlines Essay

    • 1030 Words
    • 5 Pages

    Since the birth of flight in 1903, air travel has emerged as a crucial means of transportation for people and products; It has been a way to travel faster and better overall. The airline business is a major industry, relied upon by millions not only for transportation but also as a way of making a living. In 2001, the industry dealt with the effects of another economic downturn, as business travel decreased substantially while labor and fuel costs increased. The events 9/11 greatly magnified the airlines' issues, leading to a sharp decline in customers and significantly higher operating costs. Losses continued for years; the industry as a whole didn't return to profitability until 2006. A relatively stable period followed, although controversies arose over service quality and passenger treatment in terms of flight delays,…

    • 1030 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Emirates

    • 1728 Words
    • 10 Pages

    Interview by Alistair Craven, (2006),"An interview with Mr Akbar Al Baker: The 2005 Airline Personality of the Year", Strategic Direction, Vol.…

    • 1728 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Project Report: Jet Airways

    • 4103 Words
    • 17 Pages

    support from the initial to the final level, which enabled us to develop a deep…

    • 4103 Words
    • 17 Pages
    Powerful Essays
  • Satisfactory Essays

    MAINTENANCE EXCELLENCE

    • 444 Words
    • 2 Pages

    A New Paradigm of Maintenance Management Attuned to the Requirements of the Present Marketplace and Environment.…

    • 444 Words
    • 2 Pages
    Satisfactory Essays