| The government regulation is the behaviors that the government executes on the purpose of controlling the price, market strategy and production decision of enterprises, such as the price level, the criterions of the product and the quality of service, its essence is that the government substitutes the regulation of market by the commands of administration when the market is ineffective. The air transport industry is thought to be an oligopoly industry at most time, so it is usually regulated by the government, but the American government first raised the trend of deregulation of air transport industry at 1978, and succeeded obviously. The other developed countries followed the lead of America, and succeeded too. Our government started the course of deregulation at 1980, but it is different from the west developed countries, there are two reasons of deregulation in China, one is determined by the policy of transformation from planned economy to the market economy, the other is the change of the nature oligopoly attribute of air transport industry. No matter which reason, the trend of deregulation in air transport industry is inevitable.Junhao Wang said that the core content of the government regulation is the regulation of entrance and price. By now, our government has executed two times of deregulation of entrance and two times of deregulation price, one is to permit qualified local governments to set up Air Company at 1984, and another is to permit the private capital to invest at 2002; the CAAC executed the policy of"one ticket price and different discounts"at 1997, and the CAAC deregulate parts of controlling right of price again at 2005. During the course of deregulation, our air transport industry develops obviously, if we stat according to the amount of passengers, China has been the second biggest air country in the world. But the course of deregulation is not smoothly, especially after the deregulation of price at 1997, price war broke out, and it resulted in the deficit of all the air transport industry, and the CAAC enhanced the regulation again. This article is to conclude the effect and function of the regulation policy by analyzing the effect of regulation policy on the civil air market.Our government regulation of air transport industry is not deregulated thoroughly at present; the most obvious is that the price must fluctuate in the criterion of CAAC. And although the government permits the private capital to entrance, the resources, such as scheduled flight and air oil that determine the fate of air companies are still controlled by the government and the large company groups. The government is still facing the choices of continuing deregulation or enhancing regulation. So the research on regulation policy is very necessary.In the research on the regulation policy of air transport industry, scholars have analyzed a lot from different points of view. But most of the research is on the macroscopically policy, the research on the microscopically mechanism is scarce. This article gives in-depth analysis of the regulation policy effect on the behavior of enterprise. This article researches the regulation effect on market with SCP mainframe first, and finds out that the market structure of air transport industry keeps tight relation with the change of regulation policy, that means in the course of deregulation, the centrality of the market keeps the descending trend as a whole, but it ascends obviously after the deregulation of price, at the same time, during the price war period in 1998, the market occupancy rate of local air companies descend obviously. On the view of market performance, although the amount of transport keeps developing at high speed, the profit level of air transport industry descends year by year, the oligopoly disappears gradually; on the other hand, the profitability of enterprise behaves great differently according to the attribute of enterprise in air transport industry, the local enterprises behaves obviously better than the immediate air companies, and the difference is very obvious in 1998.To analyze the effect of regulation, this article builds the air-line market model of air transport which bases on the Cournot Model, compares and analyzes according to whether the regulation exists, whether the government and enterprises are divided and the different markets. According to the calculated results of model, the change of regulation policy brings out different effect under different conditions, As a whole, deregulation is benefit to bring down the price and improve the seated rate, as a result it saves resources and improves the welfare, but if the government and the enterprises are not divided, the immediate enterprises behaves unreasonably, the immediate enterprises improve the market quotient by the price of deficit.In order to see the results of different markets, this article does demonstration analysis with the pooled data of 1996-2002 air-lines, according to difference of quotient of market structure, this article researches the market which the immediate enterprises occupy more than 80% quotient and the market which immediate occupy less than 80% quotient separately. And this article finds out that in the market which the immediate occupy more than 80%, the change of market structure has obvious effect on the amount of transport, and the effect is negative relation, but the effect is not obvious in the market which the local air companies predominate. It concludes that the flexibility of regulation of different markets is different, and it is necessary to research the markets separately.The result of this article concludes that the deregulation boosts the development of air transport market, and the deregulation of entrance promotes the competition of the market; the deregulation of price enhances the rival methods of air companies. Although the deregulation of price in 1997 resulted in the price war and the deficit of all the air transport industry, the main reason is the attribute of immediate air companies, not the regulation policy. And in the course of changing the regulation policy, different markets behave differently, the research indicates that in the market which the immediate enterprises occupy the most market quotient, the deregulation results in the centrality of the market to descend, and this promotes the development of the amount of transport in the market, but the change in the market which the local air companies predominate is not obvious. |
