School of Aviation

Permanent URI for this community

https://mro.massey.ac.nz/handle/10179/3398

Browse

Browsing School of Aviation by Subject "Airline profitability"

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    The net profitability of airline alliances using referential dollars
    (2011) Pérezgonzález, Jose D.; Lin, Bo
    This study revises a previous research in which we analysed the net profitability of airline alliances but did not control for the impact of inflation on such profitability. Using the same methodology, 15 international airlines as subjects and their net financial results for a period of 11 years as primary research variables, we now compared the performance of airlines before and after joining their respective alliances using referential dollars (i.e., constant dollars with 2010 as base year) instead of nominal dollars. The results showed a similar deterioration in short-term net profits after joining an alliance as the previous study did, and a similar behaviour of statistics tests. Thus, the conclusion then achieved still stand after this revision.
  • Thumbnail Image
    Item
    Net profitability of airline alliances, an empirical study
    (2010) Pérezgonzález, Jose D.; Lin, Bo
    This study examines the net return for airlines before and after joining an alliance. The research database was compiled from ICAOData, and comprised 15 international airlines as subjects and their net financial results for a period of 11 years as primary research variables. Two variables, the averages of five and three years net performance before joining an alliance, were tested against another variable, the average net performance five years after joining the alliance. Results show a deterioration of net profits after joining an alliance, although this trend was only significant when comparing performance over the short-term. However, the performance of American airlines accounted for most of this trend, which may have being partly affected by the consequences of September 11 2001.