EFFICIENCY MEASUREMENT AT AIRLINE CITY-PAIR MARKETS WITH DATA ENVELOPMENT ANALYSIS AND MALMQUIST PRODUCTIVITY INDEX

Purpose- The aim of this study is to reveal the efficiency ratings of airline city pairs markets. In this context, data envelopment analysis and Malmquist Total Factor Efficiency Indexes are used for efficiency measurement. Methodology- The biggest 16 city-pair markets in terms of the passengers revenue traffic were included in the analysis between the years 2015-2017. Passengers revenue traffic and load factor as output variables under analysis; variables such as the number of available seats, the number of flights were used as input variables. Findings- According to the results of the data envelopment analysis, Athens, Newyork, Berlin and Tehran markets are effective and others are not effective. Conclusion- According to the results of the total factor productivity index, it is seen that THY has increased its effectiveness in Tel Aviv, Frankfurt and Stuttgart markets. The findings of this study are thought to lead to stakeholders in the airline sector