Exploring The Efficiency of Aviation Companies in India using DEA Model

Air transport, the fastest mode of transport, has reduced distances for communication across the globe. It plays a vital role in times of emergency as well as in the event of floods, famines, epidemics, and wars. Air transport is very essential for India, where distances are extremely large and the terrain and climatic conditions are diverse as well. Civil aviation can be considered the youngest of all forms of transport. The present study analyzes the year-wise average efficiency and volatility of the companies and evaluates the overall efficiency of the aviation companies during the period of study. A non-parametric approach, namely Data Envelopment Analysis (DEA), is used based on two inputs and two outputs. The average overall efficiency of selected aviation companies from 2005 to 2019 is 83%, and the average volatility of the OTE score is 10.1%. This is an indicator of the underperformance of aviation companies and the waste of resources during the period of study.