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.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Theoretical framework
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The research paper aims to investigate the impact of airline size, specifically the number of employees, on profitability. The research also examines the potential differences in this relationship between European and American airlines.
- Relationship between airline size and profitability
- Comparison of profitability between European and American airlines
- The role of economies of scale in airline profitability
- Potential implications for market structure and regulation
- Social and scientific relevance of research findings
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the research question and its social and scientific relevance. It also highlights the importance of understanding economies of scale in the airline industry and its potential implications for policy decisions. The research paper is situated within the broader context of studies on the relationship between company size and profitability, with a specific focus on the airline industry.
- Theoretical framework: This chapter examines previous studies on economies of scale and profitability. It also establishes a theoretical framework for the research, defining key concepts and assumptions. The chapter discusses findings from research on the water sector, and the potential impact of economies of scale on airlines. It also highlights the conflicting evidence regarding the impact of size and labour costs on airline profitability, setting the stage for the research paper's investigation.
Schlüsselwörter (Keywords)
The main keywords and focus topics of this research include: economies of scale, airline profitability, airline size, employee count, labor costs, market structure, regulation, European airlines, American airlines, social welfare, and consumer surplus.
- Citation du texte
- Paul Weiland (Auteur), 2023, Economies of scale in the airline industry, Munich, GRIN Verlag, https://www.grin.com/document/1383335
