Measuring the Company's Efficiency Using the DEA Method

In the modern era of air transport, characterized by dynamic growth and constant change, efficiency and competitiveness are crucial for airlines. Airlines need to constantly evaluate and monitor their efficiency, especially in a world where environmental pressures, technological advances and changing passenger preferences create new challenges. The article points out the possibilities of using DEA (Data Envelopment Analysis) method to measure the efficiency of a selected airline company. After selecting a suitable mathematical model, we created a dataset on the basis of which we carried out the measurement and evaluation of efficiency with the help of the DEAFrontier add-on software of Microsoft Excel. We conclude that some indicators affect efficiency more than others and that there is a situation where the airline itself does not have to account for inefficient operations, as the period of the global Covid-19 pandemic illustrates. The DEA method represents a useful way to measure airline efficiency, its flexibility offers the ability to adapt to different areas and aspects. Furthermore, it can appropriately identify the procedures for the most efficient direction of companies' activities.

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Publication Details

Published
2024-11-28
DOI
https://doi.org/10.1109/ntad63796.2024.10850347
Primary Topic
Economic and Business Development Strategies
Type
article
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article

Measuring the Company's Efficiency Using the DEA Method

Edina Jenčová, Branko Mikula, Jozef Galanda, Lucia Melníková et al.
Economic and Business Development Strategies
article

Measuring the Company's Efficiency Using the DEA Method

Edina Jenčová, Branko Mikula, Jozef Galanda, Lucia Melníková, Adam Hiriak
article en

Abstract

In the modern era of air transport, characterized by dynamic growth and constant change, efficiency and competitiveness are crucial for airlines. Airlines need to constantly evaluate and monitor their efficiency, especially in a world where environmental pressures, technological advances and changing passenger preferences create new challenges. The article points out the possibilities of using DEA (Data Envelopment Analysis) method to measure the efficiency of a selected airline company. After selecting a suitable mathematical model, we created a dataset on the basis of which we carried out the measurement and evaluation of efficiency with the help of the DEAFrontier add-on software of Microsoft Excel. We conclude that some indicators affect efficiency more than others and that there is a situation where the airline itself does not have to account for inefficient operations, as the period of the global Covid-19 pandemic illustrates. The DEA method represents a useful way to measure airline efficiency, its flexibility offers the ability to adapt to different areas and aspects. Furthermore, it can appropriately identify the procedures for the most efficient direction of companies' activities.

Technical University of Košice (SK)
Affordable and clean energy
Openalex Percentile: Top 68%
Economic and Business Development Strategies
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Measuring the Company's Efficiency Using the DEA Method — Edina Jenčová, Branko Mikula, et al. · (2024) | TGRS Research Map | TGRS