Using a Bayesian meta-frontier approach to evaluate airline performance: The nexus between airline efficiency and customer satisfaction

A balanced panel of 83 airlines during 2011–2019, classified into (a) high perceived service quality and (b) low perceived service quality, was incorporated into the Bayesian meta-frontier framework. Our findings were obtained from applying a novel method to data sourced from the ICAO Data+ and Skyt...

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Main Authors: Abdelrahman Rashid Bin Taliah, Panagiotis D. Zervopoulos
Format: Article
Language:English
Published: Elsevier 2023-10-01
Series:Heliyon
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2405844023075990
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author Abdelrahman Rashid Bin Taliah
Panagiotis D. Zervopoulos
author_facet Abdelrahman Rashid Bin Taliah
Panagiotis D. Zervopoulos
author_sort Abdelrahman Rashid Bin Taliah
collection DOAJ
description A balanced panel of 83 airlines during 2011–2019, classified into (a) high perceived service quality and (b) low perceived service quality, was incorporated into the Bayesian meta-frontier framework. Our findings were obtained from applying a novel method to data sourced from the ICAO Data+ and Skytrax databases. We obtained consistent efficiency and meta-technology efficiency estimates, shedding light on airlines’ business models, products, and services to improve their efficiency and customer satisfaction. Specifically, we did not identify a trade-off between customer satisfaction and airline efficiency. However, larger firms were more likely to achieve this dual objective. Airlines classified as having high service quality reported greater allocative inefficiency than their low-quality service counterparts. During periods with or without minor external shocks (e.g., 2011–2019), airlines could offer premium products at reasonable prices or with a better quality and cost-of-service balance (e.g., premium economy cabins, extra legroom, inflight entertainment, and Internet).
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spelling doaj.art-38cacd19361643e0b8ef10c3476a9ae72023-10-30T06:05:55ZengElsevierHeliyon2405-84402023-10-01910e20391Using a Bayesian meta-frontier approach to evaluate airline performance: The nexus between airline efficiency and customer satisfactionAbdelrahman Rashid Bin Taliah0Panagiotis D. Zervopoulos1University of Sharjah, College of Business Administration, Sharjah, United Arab EmiratesUniversity of Sharjah, Department of Management, Sharjah, United Arab Emirates; Corresponding author.A balanced panel of 83 airlines during 2011–2019, classified into (a) high perceived service quality and (b) low perceived service quality, was incorporated into the Bayesian meta-frontier framework. Our findings were obtained from applying a novel method to data sourced from the ICAO Data+ and Skytrax databases. We obtained consistent efficiency and meta-technology efficiency estimates, shedding light on airlines’ business models, products, and services to improve their efficiency and customer satisfaction. Specifically, we did not identify a trade-off between customer satisfaction and airline efficiency. However, larger firms were more likely to achieve this dual objective. Airlines classified as having high service quality reported greater allocative inefficiency than their low-quality service counterparts. During periods with or without minor external shocks (e.g., 2011–2019), airlines could offer premium products at reasonable prices or with a better quality and cost-of-service balance (e.g., premium economy cabins, extra legroom, inflight entertainment, and Internet).http://www.sciencedirect.com/science/article/pii/S2405844023075990AirlinesEfficiencyCustomer satisfactionData envelopment analysisBayesian methods
spellingShingle Abdelrahman Rashid Bin Taliah
Panagiotis D. Zervopoulos
Using a Bayesian meta-frontier approach to evaluate airline performance: The nexus between airline efficiency and customer satisfaction
Heliyon
Airlines
Efficiency
Customer satisfaction
Data envelopment analysis
Bayesian methods
title Using a Bayesian meta-frontier approach to evaluate airline performance: The nexus between airline efficiency and customer satisfaction
title_full Using a Bayesian meta-frontier approach to evaluate airline performance: The nexus between airline efficiency and customer satisfaction
title_fullStr Using a Bayesian meta-frontier approach to evaluate airline performance: The nexus between airline efficiency and customer satisfaction
title_full_unstemmed Using a Bayesian meta-frontier approach to evaluate airline performance: The nexus between airline efficiency and customer satisfaction
title_short Using a Bayesian meta-frontier approach to evaluate airline performance: The nexus between airline efficiency and customer satisfaction
title_sort using a bayesian meta frontier approach to evaluate airline performance the nexus between airline efficiency and customer satisfaction
topic Airlines
Efficiency
Customer satisfaction
Data envelopment analysis
Bayesian methods
url http://www.sciencedirect.com/science/article/pii/S2405844023075990
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