The World’s Airlines. A Cost and Productivity Comparison

The World’s Airlines. A Cost and Productivity Comparison

Measures of the total factor productivity and unit costs of 14 US and 27 non-US airlines in 1983 indicate that the US has a 12 per cent productivity advantage, partially offset by higher labour prices resulting in equivalent unit costs for the US and non-US carriers. Higher productivity levels are the result of higher traffic density. Deregulation is unlikely to close the productivity gap unless non-US carriers increase their traffic density.

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