Airline company's resource reallocation using network centralized data envelopment analysis with slack-based measure
Purpose – Since airlines that employ their resources effectively will achieve operating profitability, air route resource allocation is significant for airlines. This study aims to investigate an appropriate model to reallocate resources into each air route of an airline company. Design/methodology/...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2022-12-01
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| Series: | Journal of International Logistics and Trade |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JILT-07-2022-0028/full/pdf |
| _version_ | 1797612276939751424 |
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| author | Chaehwan Lim Gyuseung Kim Hun-Koo Ha |
| author_facet | Chaehwan Lim Gyuseung Kim Hun-Koo Ha |
| author_sort | Chaehwan Lim |
| collection | DOAJ |
| description | Purpose – Since airlines that employ their resources effectively will achieve operating profitability, air route resource allocation is significant for airlines. This study aims to investigate an appropriate model to reallocate resources into each air route of an airline company. Design/methodology/approach – This study proposes a network centralized data envelopment analysis (DEA) models with slack-based measure (SBM). The proposed model not only takes into account the two interconnected stages but also considers the nonradial approach with transfer-in and transfer-out slacks for resource reallocating. Furthermore, the authors modify the objective function to an input-oriented function with SBM, and divide the model into passenger and freight parts, which makes the model more realistic for the characteristic of air routes. Findings – The empirical analysis using an airline company's internal data provides airline operators with information on how they increase or decrease input resources, which can serve as a practical guideline of resource reallocation. Specifically, the results indicate that the airline company should increase their input resources into long-haul air routes such as KOR-OCN while decreasing their input resources into short-haul air routes such as Korean-Oceania (KOR-OCN), Korean-Chinese (KOR-CHN), Korean-Southeast Asian (KOR-SEA), Korean-Japanese (KOR-JPN). Originality/value – Although some papers evaluate air route efficiencies based on the DEA approach, a few existing papers have addressed resource allocation for air routes. This paper is the first to study the resource reallocation for air routes based on the DEA approach, contributing to the literature in expanding the scope of research on resource reallocation. |
| first_indexed | 2024-03-11T06:39:00Z |
| format | Article |
| id | doaj.art-929243f9d3fa463ba2a0cce2f1a02eb4 |
| institution | Directory Open Access Journal |
| issn | 1738-2122 2508-7592 |
| language | English |
| last_indexed | 2024-03-11T06:39:00Z |
| publishDate | 2022-12-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of International Logistics and Trade |
| spelling | doaj.art-929243f9d3fa463ba2a0cce2f1a02eb42023-11-17T10:43:26ZengEmerald PublishingJournal of International Logistics and Trade1738-21222508-75922022-12-0120417418910.1108/JILT-07-2022-0028Airline company's resource reallocation using network centralized data envelopment analysis with slack-based measureChaehwan Lim0Gyuseung Kim1Hun-Koo Ha2Graduate School of Logistics, Inha University, Incheon, Republic of KoreaThe Korea Transport Institute, Sejong, Republic of KoreaGraduate School of Logistics, Inha University, Incheon, Republic of KoreaPurpose – Since airlines that employ their resources effectively will achieve operating profitability, air route resource allocation is significant for airlines. This study aims to investigate an appropriate model to reallocate resources into each air route of an airline company. Design/methodology/approach – This study proposes a network centralized data envelopment analysis (DEA) models with slack-based measure (SBM). The proposed model not only takes into account the two interconnected stages but also considers the nonradial approach with transfer-in and transfer-out slacks for resource reallocating. Furthermore, the authors modify the objective function to an input-oriented function with SBM, and divide the model into passenger and freight parts, which makes the model more realistic for the characteristic of air routes. Findings – The empirical analysis using an airline company's internal data provides airline operators with information on how they increase or decrease input resources, which can serve as a practical guideline of resource reallocation. Specifically, the results indicate that the airline company should increase their input resources into long-haul air routes such as KOR-OCN while decreasing their input resources into short-haul air routes such as Korean-Oceania (KOR-OCN), Korean-Chinese (KOR-CHN), Korean-Southeast Asian (KOR-SEA), Korean-Japanese (KOR-JPN). Originality/value – Although some papers evaluate air route efficiencies based on the DEA approach, a few existing papers have addressed resource allocation for air routes. This paper is the first to study the resource reallocation for air routes based on the DEA approach, contributing to the literature in expanding the scope of research on resource reallocation.https://www.emerald.com/insight/content/doi/10.1108/JILT-07-2022-0028/full/pdfNetwork centralized DEAAir routeResource reallocationResource utilization |
| spellingShingle | Chaehwan Lim Gyuseung Kim Hun-Koo Ha Airline company's resource reallocation using network centralized data envelopment analysis with slack-based measure Journal of International Logistics and Trade Network centralized DEA Air route Resource reallocation Resource utilization |
| title | Airline company's resource reallocation using network centralized data envelopment analysis with slack-based measure |
| title_full | Airline company's resource reallocation using network centralized data envelopment analysis with slack-based measure |
| title_fullStr | Airline company's resource reallocation using network centralized data envelopment analysis with slack-based measure |
| title_full_unstemmed | Airline company's resource reallocation using network centralized data envelopment analysis with slack-based measure |
| title_short | Airline company's resource reallocation using network centralized data envelopment analysis with slack-based measure |
| title_sort | airline company s resource reallocation using network centralized data envelopment analysis with slack based measure |
| topic | Network centralized DEA Air route Resource reallocation Resource utilization |
| url | https://www.emerald.com/insight/content/doi/10.1108/JILT-07-2022-0028/full/pdf |
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