Evaluation of Airlines Performance: The Case of Star Alliance Member Airlines

What is it about?

In the airline industry where intense competition has taken place, performance evaluation is vital for airlines to achieve their goals and to gain a competitive advantage. This study aims to evaluate the performance of airlines based on the role of performance evaluation in the airline industry. For this purpose, twelve FSCs (Full-Service Carriers) were evaluated based on financial and airline-specific performance indicators for the 2015-2017 period. While the sample consisted of Star Alliance member airlines, an integrated CRITIC and CODAS methodology was proposed in the study. In addition, a sensitivity analysis was performed after the application to examine the accuracy and the stability of the results. The results of the study reveal that financial indicators have a higher impact on performance compared to operational indicators. Moreover, Singapore Airline (SIA) is the best airline regardless of T change.

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Why is it important?

It is expected that this study, which examines the financial and operational performance of the member companies of Star Alliance, will contribute to the literature in many ways. First, no studies have been found that examine the performance of strategic airline alliances. On the other hand, in addition to the indicators used in all sectors (financial / non-financial), the airline sector has a number of airline-specific key performance indicators (KPIs) such as RPK (Revenue Passenger Kilometers), ASK (Available Seat Kilometers) and load factor (Kalemba et al., 2017). These indicators were used only in limited studies in the literature. Therefore, this study is noteworthy because it uses financial indicators and the airline-specific KPIs together successfully. Moreover, the integrated CRITIC and CODAS methodology is successfully employed in this case of airlines' performance evaluation.