PRODUCTION AND OPERATIONS MANAGEMENT

Performance Improvement Pathsin the Airline Industry:Linking Trade-offs to Asset FrontiersMichael A. Lapre Gary D. ScudderOwen Graduate School of MANAGEMENT , Vanderbilt University, 401 21stAvenue South,Nashville, Tennessee 37203, articles have been written during the past few years examining performance improvementpaths and various forms of efficiency frontiers in OPERATIONS strategy. These articles focus primarilyon defining and describing these frontiers and raise questions concerning how to improve OPERATIONS . Inthis paper, we provide one of the first empirical studies aimed at validating these earlier studies. Usinga database on the 10 largest airlines for a period of 11 years, we test and validate some of the modelspresented in the OPERATIONS literature. The 10 major airlines are separated into 2 groups for analysis:geographic specialists and geographic generalists.

In 1996, in a special issue of Production and Operations Management (see Skinner 1996a), Clark (1996) and Hayes and Pisano (1996) introduced the notion of performance improvement paths. This paper presents one of the first longitudinal empirical analy-

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  Operations, Management, Production, Production and operations management

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