Airline companies’ uses different type of lease financing like capital lease, operating lease, and sale –
and – lease back type lease. Out of them it is found in some earlier researches that sale – and – lease
back type lease has influence on share prices. In this paper operating lease has taken under
consideration for same purpose and used as input for output oriented DEA model in order to measure
relative efficiency of using lease over time for airline companies, to determine benchmark and finally
to find out where improvement is essential to be efficient. Here outputs are selected for DEA model
based on previous researches where researchers mentioned some benefits of using lease. The result of
DEA is found in this study that some companies are handling operating lease efficiently compare to
others. Based on this efficiency scores sample companies are grouped and Mann Whitney rank sum test
was applied to observe whether efficiency has any influence on share price increase in capital market or
not. It is found here that operating lease does not have this kind of influence or impact on market price
of shares.
