Performance of airlines: topsis analysis

Purpose- Airline industry is very important for modern society and has a crucial role for globalization and business development by connecting regions, promoting global trade and tourism and hence enabling economic and social development. Over the last two decades, the troubled airlines were oftenly on news delebrating financial difficulties, layouts and distrupted sceduled flights. Covid-19 also has a crucial impact on the deterioration of the industry due to quarantinas and break downs for travel and business. This empricial research intends to analyse and rank the financial performance of the top 11 airlines in the Word for the periods of 2019-2020-2021 (Covid era) and also group and rank these airlines as US Airlines, European Airlines and Chinese Airlines. Methodology- This study employs TOPSIS method. 11 biggest airline companies are selected by the total revenue generated in 2021. A total of 18 financial indicators are used to measure the profitability, liquidity, financial structure and operational efficiency for the period of 2019- 2021. Utilizing a TOPSIS analysis, the performance scores of these airline companies are calculated and a ranking is determined according to these scores. Findings- United Airlines, Delta Airlines and Southwest Airlines are the top performers in 2019. These airlines have a big drop in 2020 and their performance ranks are 8, 10 and 7, respectively. The best performer in 2020 is the Turkish Airlines. Also, United Airlines and Southwest Airlines show a fast recovery in 2021 by ranking 2 and 1, respectively. When performance ranking is applied for the groups of companies (namely; USA based, Europe based and China based companies), the USA based group is the best performer in 2019, the worst performer in 2020 and the second best performer in 2021. Meanwhile, China based group are the best performer in 2020 and 2021. Conclusion- This study shows that the Covid era has affected profitability and operational efficiency of airline companies significantly. As a result of the study, it is observed that China based airline companies managed the Covid era better than the USA based and European based airline companies.Publisher's Versio

Financial performance ranking of airlines in the Covid-19 era

Purpose- The purpose of this study is to give rankings of the top 20 airlines in the world according to some financial performance indicators for the time period between years 2018 and 2020. Additionally, this study will highlight some of the financial performance indicators of this top 20 airline companies during the COVID-19 era in 2020. Airline industry is very important for modern society and it has a crucial role for globalization and businesses by connecting regions, promoting global trade and tourism and hence enabling economic and social development. Over the last two decades, the troubled airline companies were often on news delebrating financial difficulties, layouts and distrupted scheduled flights. Many well-known airline companies needed financial rescue and either received government fundings or seeked consolidation or a partnership. COVID-19 also had a crucial impact on the deterioration of the airline industry due to quarantinas and shutdowns for travel and business. Because of these reasons, it is very important to see the rankings of the top 20 airlines in the world and indicate some of the financial performance measures of these companies during the COVID-19 era. Methodology- In this study, first the top 20 airlines of the world was listed by ranking the 111 public airline companies in the world according to their total assets in 2020. The data was gathered from the REUTERS database. From again the REUTERS database, total assets, total equity, total revenue, net income, total short-term liabilities and total long-term liabilities of this 20 airline companies was obtained in terms of USD for the period between years 2018 and 2020. In addition, the number of employees and the number of aircrafts data was gathered to show some operational indicators of these same airline companies for the same term. Then the rankings of this top 20 airline companies was made considering all of these indicators and the change in the place of the rankings of airlines between years 2018 and 2020 was indicated. In this study, it was also showed whether the ranking of the airline companies according to financial performance differed in the COVID-19 era in 2020. Findings- The analysis of this study reveals that although the largest asset size was reported by Delta Airlines in 2020, the highest revenue was generated by American Airlines. On the other hand, the highest number of aircrafts were employed by American Airlines in 2018, 2019 and 2020, whereas the highest number of employees worked for Lufthansa in the same years. Although American Airlines reported to gain the highest amount of total revenues in 2020; Cathay Pacific Airlines was ranked as the number one airline company in the same year if revenue per employee and if revenue per aircraft were considered as the performance criteria. None of these airlines was ranked as one of the top three performers considering net income for the year 2020, which was the COVID-19 era. The change in the rankings of the top 20 airlines according to net income in 2020 clearly showed that in the COVID-19 era, the financial performance of the airline companies was hit hard by the economic shutdowns. Conclusion- Based upon the findings of the analysis, it may be concluded that different financial indicators must be considered together instead of solely considering total assets, total revenues or net income to analyze financial performance of the airline companies. As it was also stated by the related literature, both operational and financial indicators are important in the performance measurement of airline companies. The financial performance of the airline companies influences short and long term company decisions as well as it shapes strategic planning. Hence, a comprehensive financial performance measurement must be employed in strategic planning of airline companies.Publisher's Versio

Financial performance of top 20 airlines

This empricial research article intends to analyse the financial performance of the top 20 airlines in the Word for the period of year 2011 and 2014. In order to measure the financial performance of the airlines on a uniqie base, an hormonic index is propesed by considering performance areas of profitability, operating, efficiency and liquidity. Next, each performance area is defined by using a various of performance ratios. Finally, all airlines companies examined are listed by their harmonic index scores. The total assets of the 20 biggest airlines are amounted over $457 billion in 2014 and Delta Airlines with an assest size of$54 billion is the biggest ailines. On the other hand, the highest revenue generated by Luftansa in 2011, 2012 and 2013 over $40 billion per year The empricial results show that the worst scores of harmonic index refer American Airlines in 2011, Soutwest in 2012, China Eastern Airlines in 2013 and Quantas Airways in 2014, while the best scores of harmonic index point Delta in 2011, Hainan Airlines in 2012 and EasyJet in 2013 and 2014. This analysis supports that the measurement of financial performance based upon total revenuue or profitability is somehow weak and may be extented by including other indicators.Publisher's Versio

Using the fuzzy multi-criteria decision making approach for software requirements prioritization

To avoid breach of agreement or contract in software development projects, stakeholders converge to prioritize specified requirements. This is due to the fact that, not all the specified requirements can be implemented in a single release. Therefore, prioritization is the act of rating requirements according to their relative importance by project stakeholders in order to plan for software release phases. The problem of existing prioritization techniques includes computational complexities, ranking inaccuracy and large disparities between final ranks among others. Consequently, this paper presents an improved approach for prioritizing requirements for software projects requirements with stakeholders based on the limitations of existing prioritization techniques using fuzzy multi-criteria decision-making (FMCDM) approach

Combining Fuzzy MCDM with BSC Approach in Performance Evaluation of Iranian Private Banking Sector

The objective of this study is to construct an approach based on multiple criteria decision making (MCDM) and balanced scorecard (BSC) for evaluating performance for three nongovernmental Iranian's banks. Following the literature relating to banking performance and BSC concepts, experts and managers select 21 indexes for evaluation. Furthermore, fuzzy analytic hierarchy process (FAHP) calculated the relative weights of each chosen index in order to tolerate vagueness and ambiguity of information, and three MCDM analytical tools (TOPSIS, VIKOR, and ELECTRE) were adopted to rank the banking performance. The results indicate that a customer “” has the most significant BSC perspectives and the customer satisfaction “1” is the most major index in banking sector. This proposed fuzzy MCDM method combined with BSC approach is a comprehensive and up-to-date model that can be a useful and effective assessment tool

Using a decision-making process to evaluate efficiency and operating performance for listed semiconductor companies

Today’s high-tech industries face increasing competition and challenges. Thus, for hightech companies, making effective use of resources to enhance business performance and maintain the competitive advantage in the market has become increasingly important. Therefore, this study aimed to design a decision-making model for evaluating the efficiency and operating performance of Taiwan’s listed semiconductor companies in 2010 to provide a basis for improving business performance. In view of this, this study combines data envelopment analysis (DEA) and improved grey relational analysis (IGRA) as efficiency tools to measure relative efficiencies; the semiconductor companies are divided into two groups, efficient and inefficient. We then integrate the multiple criteria decision making (MCDM) method (e.g. VlseKriterijumska Optimizacija I Kompromisno Resenje, VIKOR), IGRA and the entropy weight method to evaluate the operating performance of the efficient and inefficient groups, respectively. Establishing a reasonable, objective and valid evaluation model to measure semiconductor companies’ operating efficiency can provide company managers, investors and policy makers with a reference for performance evaluation. First published online: 20 Jun 201

Performance Evaluation of Aircraft Maintenance Department Using Integration Fuzzy AHP and BSC Approach in Iran

In a competitive environment changes rapidly occur therefore managers of organizations facing some challenges such as identifying important factors affecting organizational optimum usage of available resources. Thus, organizational performance evaluation is a crucial task to do and sensitive process in any industry. The objective of this study is to construct an approach based on the   balanced scorecard (BSC) and fuzzy analytic hierarchy process (FAHP) for evaluating the aircraft maintenance department in Iran. The BSC concept is applied to define the hierarchy with four major perspectives (i.e. financial, customer, internal business process, and learning and growth), and performance indicators are selected for each perspective. A Fuzzy AHP (FAHP) approach is then proposed in order to tolerate vagueness and ambiguity of information. A FAHP information system is finally constructed to facilitate the solving process. The results provide guidance to the aircraft maintenance department in Iran regarding strategies for improving department performance. The results show that financial indicator (0.305) and learning and growth indicator (0.255) have higher impacts on the objective. The constructed information system is suggested to be a good tool for solving other multiple-criteria decision-making problems

Investment decision making using a combined factor analysis and entropy-based topsis model

Traditionally, the return on assets and the return on equity are used as the criteria in the evaluation of financial performance, while risk considerations are ignored. Therefore, this study combined financial ratio variables and the RAROC (risk-adjusted rate of return on capital) as the evaluation criteria and developed a financial performance evaluation model. The proposed evaluation model combines factor analysis with entropy weight and the TOPSIS (technique for order performance by similarity to ideal solution) to evaluate the financial performance of Taiwan's 50 listed opto-electronic companies. Finally, Spearman's and Kendall's rank correlations are used to verify that there is no significant difference between the 2007 and 2008 rankings of the companies. The empirical results show the financial performance rankings of the companies before and after the global financial turmoil. These findings not only help investors making investment decisions, but also can help managers make decisions to improve their company's financial performance

Identification and ranking of effective factors of marketing (controllable) to receive the services from free zone with MADM approach

This study applies the fuzzy MCDM (multicriteria decision making) to evaluate the services Performance in free trade zone. Performance evaluation is an important issue for managers, since it can be used as a reference in decision making with regard to performance improvement, specially teaching performance improvement. For this purpose, in this study, we use fuzzy set theory for the measurement of performance and apply AHP in obtaining criteria weight and TOPSIS in ranking. A fuzzy MCDM is an approach for evaluating decision alternatives involving subjective judgments made by a group of decision makers. A pairwise comparison process is used to help individual decision makers make comparative judgments, and a linguistic rating method is used for making absolute judgments

Evaluating competitiveness using fuzzy analytic hierarchy process - A case study of Chinese airlines

[[abstract]]With the development of a national market economy, the Chinese aviation industry is now confronted with international competition. Therefore, it is necessary to research the competitive status of Chinese national aviation, as well as advice on how to enhance the competitiveness of the Chinese aviation industry. The main objective of this paper is to propose FAHP as an effective solution for resolving the uncertainty and imprecision in the evaluation of airlines' competitiveness. In this paper, we review the research of industrial international aviation competitiveness at both home and abroad, discuss a theoretical framework for the study of aviation competitiveness, establish an index system with five first-order indicators and 17 second-order indicators, set up a Chinese aviation competitiveness model based on simple fuzzy numbers from the fuzzy analytic hierarchy process, and evaluate the competitiveness of five major Chinese airlines. The results showed that this model and these indicators are scientific and practical, with a wide range of application prospects for the purpose of improving and increasing Chinese airline competitiveness in the international market. The effective approach presented in this paper is especially applicable when subjective judgments on performance ratings and attribute weights are not accessible or reliable, or when suitable decision makers are not available.[[notice]]補正完畢[[incitationindex]]SCI[[booktype]]紙本[[booktype]]電子版[[countrycodes]]US