Evaluation of Efficiency of Brazilian Airlines using the
MCDEA-TRIMAP Model
Eliane Ribeiro Pereira
1
, Maria Cecília de Carvalho Chaves
1
and João Carlos C. B. Soares de Mello
2
1
Accounting Department, Universidade Federal do Rio de Janeiro, Av. Pasteur, 250, Urca, RJ, Brazil
2
Production Engineering Department, Universidade Federal Fluminense, R. Passo da Pátria, 156, Niterói, RJ, Brazil
Keywords: Data Envelopment Analysis (DEA), TRIMAP, Air Carriers.
Abstract: The deregulation of the domestic airline industry brought a significant increase in competition between
airlines, pushing them to continuously update their strategies. This article reviews the operating
performance of these companies, from the contrast in the results of the DEA classic model and MCDEA-
TRIMAP efficiency indicators. The use of such methodology allows the increase of discriminatory power of
the productive units evaluated and a better evaluation of them. The application of the DEA model to the data
from the Brazilian Airline industry for the year 2008 indicated three companies as efficient, while the use of
MCDEA TRIMAP index allowed the identification of the most efficient company in 2008. The index
provided better discrimination of the production units in the study.
1 INTRODUCTION
The continued development of commercial aviation
has led to it being one of the main means of
transportion for both passengers and cargo, when it
comes to medium and long distances. Governments
and analysts often highlight the airline industry as
playing an essential and strategic role for the country
(Pasin and Lacerda, 2003). In Brazil, which has
large territorial dimensions, the use of commercial
aviation is highlighted as an element of integration
between its farthest points. Its unquestionable
importance can be measured by it being the largest
market in Latin America, accounting for 3% of
national GDP (Araújo et al., 2006).
The Brazilian air transportation sector has
undergone profound changes over time, mainly due
to the deregulation of the sector, (Soares de Mello et
al., 2003), which brought increased competition into
the air transportation industry. The entry into the
market of GOL Airlines, the first LCC (low cost
carrier) airline in Latin America in 2001, further
intensified competition (Evangelho et al., 2005). To
ensure competitiveness, the airlines have been
forced to aim for better use of their resources. New
transformations occurred due to both physical
infrastructure problems and operational issues,
brought to light by the occurrence of serious
accidents in the years 2006 and 2007. The domestic
airline industry was then placed in check and has
slowly been recovering from this period, marked by
insecurity and mistrust.
This article aims to investigate the performance
of Brazilian airlines within the scenario described.
The analysis carried out took into account the staff
involved in the operation of the means of
transportation, and the use of the fleet to transport
cargo and passengers within national territory and
internationally, as done by Silveira et al. (2008).
Other studies regarding operational efficiency can be
found in Soares de Mello et al. (2003) and Araújo et
al. (2006). Fernandes and Capobianco (2001) and
Fernandes and Capobianco (2004) used the DEA
tool to study the capital structure of companies.
Lopes et al. (2006) investigated the pricing of
airlines in domestic long-distance flights. The DEA
methodology is widely used in the study of air
transportation and the efficiency of airports.
(Fernandes and Pacheco, 2002); (Pacheco and
Fernandes, 2003); (Soares de Mello and Gomes,
2004); (Pacheco et al., 2006).
To measure the effectiveness of airlines, the
model MCDEA created by Li and Reeves (1999)
was applied, which allows the ordination of efficient
units, with the use of two objective functions in
addition to the classic DEA. Next, the TRIMAP tool
(developed by Clímaco and Antunes 1987) was
65
Pereira E., Chaves M. and Mello J..
Evaluation of Efficiency of Brazilian Airlines using the MCDEA-TRIMAP Model .
DOI: 10.5220/0004310302130221
In Proceedings of the 2nd International Conference on Operations Research and Enterprise Systems (ICORES-2013), pages 213-221
ISBN: 978-989-8565-40-2
Copyright
c
2013 SCITEPRESS (Science and Technology Publications, Lda.)
used, which allows investigation of the decomposing
of the area of the weights space of the objective
functions. Finally, by calculating the values of
objective functions for each region of weight space,
the efficiency index MCDEA-TRIMAP was
determined proposed by Soares de Mello et al.
(2006) in order to assess each airline.
This article is organized as follows: section 2 is a
brief summary of the evolution of the Brazilian
airline industry. Section 3 presents a review of the
tool and the DEA model created by Li and Reeves.
Section 4 discusses the use of the TRIMAP tool in
the solving of the MCDEA model, and Section 5
presents the characterization and modeling of the
problem. Section 6 discusses the results of applying
the MCDEA model, together with the calculation of
the efficiency index, as well as conducting a
comparison of them with the results obtained from
the classic DEA. Finally, Section 7 describes the
conclusions of the study.
2 AIR TRANSPORT SECTOR
The first big boost for the airline industry took place
in World War I when aircrafts were used in military
strategies. However, it was only after World War II
that air transportation began to be used on a larger
scale.
The large extension of Brazilian territory and the
precarious nature of other means of transportation
favored the expansion of commercial aviation in the
country, which began in 1927 with the founding of
the Airline Rio-Grandense (VRG). In 1933 another
major company was founded: VASP Airlines, which
three years later inaugurated a regular flight between
Rio de Janeiro and São Paulo, which remains until
today the largest line of domestic aviation traffic,
(Oliveira, 2005).
In the 40s, the market gained tremendous
momentum with the purchase of American aircrafts
from the World War II surplus (Novais and Silva,
2006) sold at low prices and financing, which
favored the emerge of airlines. The poor
administrative and financial structure of companies
at that time resulted in the realization of many
mergers and bankruptcies in the 50s, and few
Brazilian companies were maintained, operating
mainly regionally.
The 60s were marked by the search for solutions
to the problems the sector faced. The government
created the National Aviation Conference
(CONAC), with the aim of defining strategies to
reverse the crisis which the airline industry was
engulfed in. Defined policies and guidelines, which
remained in place until the late 80's, encouraged the
merger of companies, improving their financial
situation. The industry began to operate under a
model of "managed competition" in which the
government controlled both the entry of airlines into
the domestic market, as well as the defining of fees
to be charged (Guimarães and Salgado, 2003).
The early 90s brought the introduction of a new
policy for the Brazilian air transportation industry,
resulting in the loosening of regulations in the
sector. Companies were able to start working with
different rates, due to tariff bands, controlled by the
government. In 1992, the abolition of regional
monopolies contributed to increased competition in
the sector. At the end of the decade, the competition
received a new impetus - the tariff bands were
extinguished and exclusivity in the operation of
some airlines to regional companies was removed,
(Lima and Soares de Mello, 2009). All companies
became domestic, ending the classification of
regional and national companies.
With the absorption of the company Cruzeiro,
VARIG became, at the beginning of the XXI
Century, the largest carrier in Latin America. During
this same period, the DAC (Civil Aviation
Department), currently the ANAC (National Civil
Aviation Agency) promoted the freedom to set rates,
allowing each company to define their marketing
strategy. TAM which had been a regional airline,
became the second largest company in the South
American continent, while Transbrasil ceased
operations in 2001.
The process of creating new companies and
airlines, and the frequency of flights and aircrafts
was made more flexible, which enabled the creation
of GOL Airlines in 2001, the first Brazilian
company to apply the model LCC (Low Cost
Carriers). In this model, lower rates are charged,
with high use of the aircrafts, increased use of the
internet for sales, service on board reduced and
better use of the maximum takeoff weight
(Evangelho et al., 2005).
The year 2005 was marked by change. VASP
operations ceased, while new companies started
regular operations. Some companies that were
traditionally part of the irregular segment became
concessionary companies and started to operate
regular airlines. TAF Airlines, for example, returned
to the market and to this field of work from which it
had retired in 2002.
In September 2006, the positive momentum
gained by a sector seen as having excellence in
safety, quality and punctuality was shaken by the
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early indications of serious problems. Air disasters
revealed the serious lacks in the physical
infrastructure of the Brazilian airline industry. Flight
controllers were removed, others went on strike;
flights were continually canceled and airlines who
could not meet the scheduled times for their flights
aggravated the crisis by overselling tickets,
outnumbering the seats available. In July 2007, yet
another accident resulted in further uncertainty for
air travelers.
After the heavy crisis the airline industry had
faced in 2006 and 2007, 2008 came as a year of
recovery for the sector, which sought to adopt new
measures to restore the confidence and credibility
they had previously enjoyed. Even so, Visagio
(2008) cautions that although the symptoms of the
crisis have been reduced, consequences generated by
the global financial crisis can bring difficulties for
the sector, due to decreased availability of credit.
Few companies dominated the domestic market
between 2003 and 2008. The Statistical Yearbook of
Air Transport for the year 2008 highlights the
presence of four major companies that year: Tam,
Gol, VRG and Oceanair, the first 3 being considered
the biggest of the year. In October of that year, Gol
merged with VRG, resulting in the VRG Linhas
Aéreas S.A. , (VRG Airlines) leaving the domestic
market basically divided between two companies.
3 DATA ENVELOPMENT
ANALYSIS AND LI AND
REEVES’ MODEL
The Data Envelopment Analysis (DEA), developed
by Charnes, Cooper and Rhodes (1978), uses
mathematical optimization in order to estimate the
technical efficiency of production units (Decision
Making Units - DMUs) without have to arbitrate the
weights for each input variables (available
resources) or output (results obtained) or consider
financial matters to make comparative analyses
(Estellita Angulo-Meza and Lins, 2000).
Multiobjective Linear Programming (PLMO)
and DEA have in common the concept of Pareto
efficiency, since both approaches consider that
production units are efficient, if, and only if, it is not
possible to improve one of its features without
worsening any of the others.
The DEA metholdology constructs an efficient
frontier, which vertices are formed by DMUs
deemed efficient (Pareto efficient) because they
have a better input/ output ratio, while the others are
located in a region below the boundary (Gomes et
al., 2003). Since each DMU chooses its own set of
multipliers, so that the effectiveness is the best
possible in relation to others, it is possible that a
large number of DMU's are located on the efficient
frontier, revealing the benevolent structure of the
method and its low discriminatory power. According
to Leta et al. (2005) for empirical determination, the
tie of production units happens when the number of
DMU's is not very large compared to the total
number of inputs and outputs.
The MCDEA model, by Li and Reeves (1999),
uses Multiobjective Linear Programming in order to
solve the problems of discrimination of the DMU's
and promote a better distribution of the multipliers
for the variables. It proposes a multicriteria approach
to DEA, including two other objective functions, in
addition to the traditional objective function of the
DEA model, each representing a new criterion to
measure the efficiency (maximum deviation and
sum of deviations). Since the criteria provides less
flexibility for optimization, it tends to restrict the
freedom of DMU's in the quest for efficiency.
It should also be noted that the MCDEA model
can be considered a method of joint evaluation
(Angulo-Meza et al., 2003) because it is a
multicriteria method which presents non-dominated
solutions, taking into account all the objective
functions without being limited by the solutions
obtained from the individual optimization of each
function.
The model originally defined as CCR, considers
the maximizing of the efficiency of the production
unit, which is calculated according to the model (1)
where v
i
and u
r
are the multipliers of inputs i, i =
1,...,m, and outputs r, r = 1, ..., s, respectively; x
ij
and y
rj
are the inputs i and outputs r of DMU j, j =
1,..., n; x
io
and y
ro
are the inputs i and outputs r of
DMU 0.
Max h
o
=
s
r 1
u
r
y
ro
Subject to
m
i 1
v
i
x
io
= 1 (1)
s
r 1
u
r
y
rj
-
m
i 1
v
i
x
ij
0 , j=1,...,n
u
r ,
v
i
0 ,
r, i
A DMU is efficient when h
o
= 1, which means
that the restriction relating to the DMU is active and
therefore has to be equal to zero. The MCDEA
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67
model proposes the use of the variable d, as the
measurement rather than h. Thus, in this model the
DMU is efficient if, and only if, d = 0. Therefore, it
could be assumed that this formulation minimizes
the inefficiency of the DMU with the restriction that
the weighted sum of outputs be less than or equal to
the weighted sum of inputs of each DMU. Thus, the
CCR model is reformulated as shown in (2):
Min d
o
Subject to
Max h
o
= u
r
y
ro
m
i 1
v
i
x
io
= 1 (2)
s
r 1
u
r
y
rj
-
m
i 1
v
i
x
i j
+ d
j
=
0 , j=1,...,n
u
r ,
v
i ,
d
j
0 ,
r, i
From the model presented in (2), and in order to
restrict the freedom of choice of the multipliers, the
MCDEA model adds two objective functions:
minimization of the sum of deviations ("general
benevolence") and minimizing the maximum
deviation ("equity "). According to Li and Reeves
(1999), each of the three objective functions is
independent of the others, since there is no order of
priority among the criteria of efficiency. The
MCDEA formulation is shown in (3):
Min d
o
Min Max d
j
Min
n
j 1
d
j
Subject to
m
i 1
v
i
x
io
= 1 (3)
s
r 1
u
r
y
rj
-
m
i 1
v
i
x
i j
+ d
j
=
0 , j=1,..., n
u
r ,
v
i ,
d
j
0 ,
r, i
In evaluating the results, a DMU is minimax if,
and only if, the value of d
o
corresponding to the
solution that minimizes the second objective
function of the MCDEA is zero. Likewise, a DMU
minisum is efficient if, and only if the value of d
o
corresponding to the solution which minimizes the
third objective function of the model is zero.
When a DMU is minimax or minisum efficient,
it must also be DEA efficient because, by definition,
the efficiencies minisum and minimax require d
o
=
0. It can be concluded, as a result, that the minimax
and minisum objectives do not, as a general rule,
favor the classical efficiency of DMU under
evaluation.
To solve the model being studied, a decision
support tool for TRIMAP was used, which has an
excellent graphic interface for analysis and is
suitable for linear programming problems which
have three objective functions.
4 TRIMAP AND MCDEA
The TRIMAP method (Climaco and Antunes, 1989),
combines three fundamental procedures:
decomposition of the weights space, introduction of
restrictions in objective space, and introduction of
restrictions in the weights space. The interactive
environment enables the decision-maker to research
efficient solutions, based on past progressive
learning findings of efficient solutions. The
combination of reduced permissable space, along
with the reduction in the weights space of objective
functions, allows the agent to specify lower
constraints for the values of the objective function,
and/or restrictions in the weights space (Climaco et
al., 2003).
The TRIMAP calculates efficient solutions that
optimize each objective function and the efficient
solution that minimizes a weighted Tchebycheff
distance to the ideal solution. During the
interactions, as unwanted solutions are eliminated,
the preferences of the decision maker are perceived.
The development of the method enables the
reduction of permissible space, saving
computational effort and progressively increasing
the focus on the sub-region of greatest interest to the
efficient decision maker, facilitating the decision
making.
The use of this tool allows for key graphcs to be
obtained for the study of the MCDEA model. The
graph obtained shows the weights space
decomposed in indifferent regions - regions where
the weights of the objective functions may vary
without changing the value of the solution obtained -
that correspond to the basic non-dominated solutions
obtained. In addition, the chart can show direct
restrictions on weights and permissible values of
objective functions. The TRIMAP also offers a
summary of the numerical results obtained,
providing for each nondominated basic solution, the
value of the basic variables, the objective functions,
the percentage of area occupied by the region of
indifference, among other data. In this study
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TRIMAP was used to generate solutions and served
as an analysis tool for studying the weighting space,
as in Soares de Mello et al. (2006).
The TRIMAP is a tool that is well suited for the
study of the MCDEA model, once it calculates all
the solutions of the optimal objective function of the
classic DEA, identifying the nondominated
solutions. Soares de Mello et al. (2006) highlights
the importance of this result, because the knowledge
of the existence of alternative multipliers and the
identification which corresponds to basic solutions
enables the realization of further analysis. In
addition, knowledge of the decomposition of
weighting space allows the investigation of the
stability of the efficient solutions, as well as the
identifying of combinations of weights which, while
not giving maximum efficiency to a DMU, enable
them to be considered a good solution, as they don’t
excessively reduce the efficiency, and by providing
better values to other objective functions, are more
in line with the preferences of the decision-maker.
In Climaco et al. (2008) one can find discussions
on how to do qualitative analysis of the MCDEA
model with TRIMAP. Soares de Mello et al. (2006)
proposed an MCDEA- TRIMAP evaluation index,
which considers the properties derived from the use
of the TRIMAP in the Li and Reeves model.
Considering that the calculation of efficiency in this
model requires the consideration of all the possible
combinations of the weights of objective functions
and that the values assumed by the classical
objective function undergo continuous variation, this
objective function is integrated when the weighted
sum of three objective functions is optimized. This
integration must be done in the entire space of
possible weights and, the result divided by the size
of this space, provides the average value of the
classic objective function in this space. The
complement of this average value represents the
efficiency ratio, as detailed in (4):
I (Ef
MCDEA- TRIMAP
) = 1- ((

FO1 (λ
1
, λ
2
, λ
3
)
dS)/área ) (4)
As the integration is continued by parts in the
weights space, assuming a constant value in each
region of continuity, the calculation of the index can
be simplified by making the weighted sum of the
first objective function, using as a measure the
percentage area in each valid solution. It is important
to note that all these values are easily obtained
through TRIMAP. To avoid distortions in the
integration of the weights space the expression on
the objective function minisum must be divided by
the total number of DMU's under analysis (Soares de
Mello et al, 2006). In accordance with the model
properties of Li and Reeves, MCDEA index is less
than or equal to the classic DEA efficiency. In this
study the evaluation of the efficiency is performed
by comparing the index with the results obtained by
classic DEA.
5 CHARACTERIZATION AND
MODELING OF THE
PROBLEM
Annually, the ANAC (National Civil Aviation
Agency) publishes the Statistical Yearbook of Air
Transport, which contains statistical data on the
national air transportation sector. Silveira et al.
(2008) investigated the efficiency of the national
airlines, considering the data for the year 2005,
using a methodology similar to that used in this
study. The big changes that occurred in the scenario
of the air transport industry in recent years
motivated the realization of this study, which
considers the data for the year 2008, available at
www.anac.gov.br. The recent scenario in the airline
industry shows significant changes from one year to
another with mergers, creation, and closure of
companies. Therefore, it was not possible to perform
a comparative analysis of the results obtained from
the previous years.
Data provided by ANAC is made available at the
end of the year, and therefore not considered for
purposes of analyzing any possible variations
throughout the year. In October 2008, Varig was
bought by Gol and the national market was basically
divided between two companies: Gol/VRG and
TAM. In order to simplify things, this study
considered only one company (GOL/VRG), taking
into account the sum of each company’s information
during the period.
The companies AZUL, MASTER TOP,
SKYMASTER and VARIG LOG did not present
their data in the time frame for disclosure and are
not included in this study. The company ABSA -
Aerolineas Brasileiras, used only for cargo
transportation, was also not considered.
In 2008, the serious challenges the airline
industry faced in 2006 and 2007 were, if not solved,
at least softened. The government adopted a series of
measures throughout this time, with the objective
being to solve the problems of the infrastructure and
other particular problems which unfolded during the
crisis.
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69
The evaluation of Brazilian airlines was done
from a comparative analysis of the results obtained
by applying the DEA methodology and the indexes
obtained by applying the MCDEA model.
Air transport is characterized by the transport of
passengers and cargo over long distances. Therefore,
for this study two outputs related to these variables
were chosen: number of paid seats used, and the
metric tons used per kilometer. The choice of inputs
considered the main capital asset of these
companies: airplanes. Since the aircraft from each
company has distinct characteristics, the maximum
takeoff weight input was used, being a variable that
is linked to the ability to transport both passengers
and cargo. On the other hand, staff is needed to
operate the aircraft, perform services, and manage
the company. For that reason, the other input used
was the total staff amount of each company.
Each individual company was considered a
DMU. As mentioned, Gol and Varig were
considered as a single DMU, due to the purchase of
the latter in October 2008. As the study aims to
evaluate the performance of airlines in terms of their
operational management, an input- oriented model
was used to evaluate companies that have the ability
to reduce their fleet and manage their workforce
without causing damage to the total transported.
Despite the difference in size between airlines,
there is no guarantee of disproportionality between
the inputs and outputs. Silveira Soares de Mello
(2009) formulated the MCDEA-BCC model and
applied it to the airline industry, with the data
pertaining to the year 2005. However, due to the
formulation of classic BCC, the MCDEA-BCC can
generate slacks larger than 1, which means negative
efficiencies. According to Soares de Mello et al
(2002), this phenomenon occurs especially when a
DMU has an increasing return to scale. Thus, the
CCR model was adopted for comparison with the
model used by Reeves and Li (1999), which is based
on this model.
6 RESULTS
The classic DEA-CCR was applied to the 17 DMU’s
that represent regular Brazilian air transport
companies, with the movement of cargo and
passengers in 2008.
According to ANAC, the year 2008 was marked
by the presence of four companies who represented
80% of the total number of stages performed: TAM,
GOL, VRG, and OCEANAIR, the first considered
the top three of the year.
In October 2008 the merger of GOL and VRG
companies took place which resulted in the
continuation of a single company, VRG Linhas
Aereas SA. For simplicity sake, this study
considered conjunctively the data for both
companies, as GOL/VRG.
The 2008 report of the ANAC featured a
retrospective perspective of the information
disclosed in the period 2000/2008, noting that
between the years 2003 to 2008, the domestic
market share had the predominance of few
companies in the sector. In 2008, TAM had a 50%
stake, Gol 29%, and VRG, 14%.
The first step of the study was to apply the DEA-
CCR model to the DMU’s investigated, using the
software SIAD of Meza Angulo et al. (2005). The
results are summarized in Table 1.
Table 1: Classical Efficiency for Airlines.
DMU Airline
Classical
Efficiency
DMU1
Abaeté Linhas Aéreas 0,098966
DMU2
Gol Transp. Aéreo
Ltda/VRG Linhas Aéreas
1,000000
DMU3
Meta Mesquita 0,414240
DMU4
Oceanair 0,619809
DMU5
Puma Air 0,091950
DMU6
Passaredo Transp.Ae.S/A 0,384954
DMU7
Pantanal L.A.Sul-
Matogrossense
0,255394
DMU8
Rico Linhas Aéreas S/A 0,378091
DMU9
Tam Linhas Aéreas S/A 1,000000
DMU10
Trip T. A. R. Interior
Paulista
0,431652
DMU11
Taf Linhas Aéreas S/A 1,000000
DMU12
Total Linhas Aéreas S/A 0,713920
DMU13
Webjet 0,694577
DMU14
Air Minas 0,192657
DMU15
Nht 0,129612
DMU16
Sete 0,150975
DMU17
Team 0,078830
The classic DEA-CCR model provided 3
efficient DMU's - Gol Transportes Aereos
Ltda/VRG Linhas Aereas, TAM Airlines S/A, and
TAF Linhas Aéreas S/A, without it being possible to
make any distinctions between them. At this point,
the model MCDEA was applied in order to increase
the power of discrimination between the units
studied and the TRIMAP was used in order to assess
the weights space.
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Figure 1: Gol/VRG. Figure 2: TAM.
Figure 3: TAF.
Figures 1, 2 and 3 show the decomposition of the
weight space for the DMU's effective in the classical
model. The analysis (details in Clímaco et al., 2008)
shows that the DMU TAM was the only efficient
minisum and minimax. Since the solutions that
optimize the objective function related to the DEA
CCR model cover the entire weights space, the latter
is better assessed by the MCDEA model.
The DMU GOL/VRG is minimax efficient but
not minisum efficient. However, the DMU TAM is
only minisum inefficient in a small area. The DMU
TAF was only efficient achieving this efficiency
with very specific multipliers.
The calculation of the evaluation index for
MCDEA-TRIMAP DMU's considers the weighted
sum of the solutions of the first objective function
which weighting space is the percentage of the areas
where each solution is valid, using the data provided
by TRIMAP.
From these results, it was discovered that the
only DMU which remained efficient was the
company TAM, followed by GOL/VRG, confirming
the graphical analysis carried out and the fact that
the model restricts the optimization of MCDEA
DMU's.
In addition, the analysis of the results show the
benevolence of the Classic DEA model, which
identified the company TAF Airlines as efficient,
while the MCDEA model showed the same
company as having very low efficiency ratios,
0.2568.
7 CONCLUSIONS
The application of the DEA model to the data from
the Brazilian Airline industry for the year 2008,
provided by ANAC, indicated three companies as
efficient - Gol Transportes Aereos Ltda/VRG Linhas
Aereas, TAM Airlines S/A, and TAF Linhas Aéreas
S/A, without it being possible to make any
distinctions between them. The use of MCDEA
TRIMAP index allowed the identification of the
most efficient company in 2008 - TAM airlines.
Therefore, the index provided, once again, better
discrimination of the production units in the study.
It is important to note that GOL, shown as
efficient in the application of the DEA model,
obtained a very similar index in the application of
MCDEA. However, TAF reached a much lower
index. This difference can be seen in the qualitative
analysis of Figure 3, where TAF barely achieved
being efficient, and even then, in a very small area.
The decomposition of the weight space for the
DMU's effective in the classical DEA model is
illustrated in Figures 1, 2 and 3. It shows that the
DMU TAM was the only efficient minisum and
minimax, being considered the company more
efficient. This result could be expected, since the
solutions which optimize the objective function for
the DEA CCR model overlying the entire space of
weights. The DMUs GOL / VRG is only minimax
efficient, while TAF is only efficient DMU, which is
not getting thus able to overcome the result of the
first DMU.
It should be noted that since the departure from
the market of VARIG, in 2006, TAM has been
responsible for the largest share of the Brazilian
market. The result obtained in this study is quite
consistent, since efficiency is crucial for a company
that wishes to remain an industry leader. The merge
of GOL/VRG, which occurred at the end of 2008,
will undoubtedly bring dispute in the near future and
generate strong reactions in the market.
The MCDEA model (Li and Reeves, 1999) was
developed for DEA-CCR models. Future studies
may investigate the use of MCDEA with DEA-BCC
models (Banker et al., 1984). Future studies may
also explore the potential interactivity of TRIMAP
and DEA models, with constrains to the values of
the objective functions, and constraints with values
of the multipliers.
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