Economies of scale in the airline industry
Do larger airlines profit from economies of scale?
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Seminar paper from the year 2023 in the subject Economics - Other, grade: 1.1, Erasmus University Rotterdam (Erasmus School of Economics), language: English, abstract: What effect does the size (number of employees) of airlines around the world have on their profitability and how does this differ between European and American airlines? To determine whether this was the case, an analysis of Orbis data, and further technical exploration through scatterplots and graphs in SPSS, was conducted. However, the statistical data suggests that there is no significant relationship between an airline¿s si...
Seminar paper from the year 2023 in the subject Economics - Other, grade: 1.1, Erasmus University Rotterdam (Erasmus School of Economics), language: English, abstract: What effect does the size (number of employees) of airlines around the world have on their profitability and how does this differ between European and American airlines? To determine whether this was the case, an analysis of Orbis data, and further technical exploration through scatterplots and graphs in SPSS, was conducted. However, the statistical data suggests that there is no significant relationship between an airline¿s size and its profitability. Our results, therefore, conclude that large airlines cannot make use of economies of scale to become more profitable, potentially encouraging policy makers to change the current market structure as larger firms are provenly not more efficient. In dieser ausführlichen Hausarbeit des Faches VWL wird die Frage näher erläutert, ob größere Fluggesellschaften im erhöhten Ausmaß von Skaleneffekten und einer höheren Profitabilität profitieren als kleinere Firmen. Anhand von statistischen Methodiken wird diese Fragestellung detailliert erforscht. Dabei wird neben der eigentlichen Frage auch noch die Annahme untersucht, dass amerikanische Fluggesellschaften profitabler sind und stärker von Skaleneffekten profitieren als ihre europäischen Konkurrenten. Dies macht die Hausarbeit auch gesellschaftlich relevant, da sich aus diesen Fragestellungen wichtige Erkenntnisse ziehen lassen, etwa bezüglich der Wettbewerbsfähigkeit Europas.
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