Maximizing Operational Efficiency in Air Cargo: An In-Depth Comparative Study of Five Leading Combination Carriers

Abstract

This study evaluates the efficiency of five combination carriers using the DEA Super-Radial model, emphasizing the critical yet often overlooked cargo operations. Many studies predominantly focus on passenger-centric metrics, neglecting the complexities and significance of cargo operations in airline revenue streams. This research addresses this gap by examining both passenger and cargo services, thus providing a holistic understanding of airline operations. The super-efficiency rankings for 2022-23 revealed that no combination carrier achieved efficiency under the Super-CCR-I and Super-CCR-O models. However, Lufthansa and Air China were efficient according to the Super-BCC-I model, while LATAM and Air France KLM were efficient under the Super-BCC-O model. The study identifies inefficiencies in the remaining carriers and suggests improvements such as adapting to a dynamic business environment, investing in fuel-efficient aircraft, optimizing route planning and cargo operations, adopting sustainable practices, and leveraging advanced technologies. By utilizing the DEA Super Radial model, this study offers valuable insights to enhance operational efficiency and profitability, ultimately contributing to a more sustainable aviation industry.