Airline Cost and Performance: Implications for Public and Industry Policies

Abstract

Part I puts the research undertaken in this study in the context of an industry and an institutional setting. Part II describes the structure of the Canadian airline industry and its major carriers, along with a brief description of the data base used for this study. Descriptive statistics are presented which reveal major trends in the structure of the industry and the carriers. Part III investigates the economic performance of the Canadian airlines. The performance measure used is Total Factor Productivity, the output per unit of total resources expended. Part IV looks at airline costs in more detail. Part V presents the conclusions of the study. Policy implications of the empirical results obtained from the cost structure and the Total Factor Productivity analysis are discussed, followed by a general discussion of the regulatory policy implications of the empirical results.

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