Performance and Productivity of Regional Air Transport Systems in China

Abstract

The construction and operation of air transport systems (ATS) needs huge investment, so its performance is of wide concern. The influences of social and economic factors in different regions must be considered when evaluating ATS performance. In this paper, a model combining data envelopment analysis, stochastic frontier analysis, and bootstrap technique is adopted to evaluate the ‘real’ performance of the air transport system in China. The evaluation results show the ATS performance in different regions. Social and economic factors are proved to pose influences on provincial ATS efficiency. Scale efficiency is the main factor that restricts the efficiency of China’s ATS. Technological change has determined the trend of ATS total factor productivity. The research results may implicate that improvements can be gained by modifying airspace limitations and regulatory conditions that impose significant constraints on ATS. The importance of ATS technological development strategy and the legitimacy of air transport modernization policy are also supported.