Impact of regional airline’s efficiency: a country-specific study over successive time periods

Abstract

In general, studies point to the impact of low cost companies on the efficiency of full service carriers, however; there is great potential for regional airline growth in Brazil, and in that sense this study seeks to investigate the impact of regional companies on the efficiency of low cost and full service carriers. For this analysis, the efficiency is distinguished into operational and financial ones. Results show that the full service segment is better in operational efficiency but the regional segment is better in the financial one. The impact of each segment upon each other is also presented.