Efficiency Evaluation in an Airline Company: Some Empirical Results

Abstract

During the last years enormous attention has been given to the assessment and improvement of the performance of productive systems.In this context, there are two types of modelling methods of efficiency measurement: a non parametric one, represented by Data Envelopment Analysis (DEA), and a parametric one, represented by Stochastic Frontier Analysis (SFA).The main objective of this empirical study is to evaluate the operational performance of an Italian airline for the year 2007 by using these two alternative methodologies.Then, the technical efficiency estimates obtained from the two techniques are compared.