Study On Aircraft Purchase Decision-Making On DEA Economic Efficiency Appraisals

Economic appraisals of aircraft models are vital in purchase decision-making for airline firms. A study on this subject could provide guidance for industry practice.Based on some recent research findings and non-Archimedean limits to infinity in C~2R and the DMU prioritizing model, this paper creates a quantitative model and an input-output index system which are successfully tested by the data from some major airlines. this paper uses the model to appraise the efficiency of some major aircraft models operating in both domestic and international routes, and the result reveals the low efficiency of some of the aircraft models, which implies the ineffectiveness of the purchase decision-making. Furthermore, this paper analyzes the factors which influence the inaccuracy of aircraft model choice decision-making.In conclusion, the DEA model and the index system established in this paper provides a practical tool for appraising the economical viability of a certain aircraft model which is vital in purchase decision-making in airline industry practice. Application of this model can improve the effectiveness and accuracy of the decision-making.