Research On The Master Budgeting Management Of Chinese Airlines

Due to the more and more fierce competition in the civil aviation industry, airlines in our country must improve their management. "Master budgeting management is one of the few management instruments which can bring all the key problems into a system". And our airlines have known about how important to implement master budgeting management. However, there is a great deal of problems in practice that confines its avail.Based on the theory analysis of master budgeting management, this disquisition combines theory with practice, analyses the status quo, discusses the major problems incurred in the operation of master budgeting management, then puts forward corresponding suggestions to improve them.Using the Kaplan budget model and strategy maps for reference, this disquisition breaks up airlines' strategic objective, and proves they can link a company's strategy to its budget objective better. When refers to the process of dividing cost center, airlines should consider whether a certain cost can be controlled by its cost center, so that the cost center has its own rights and liabilities. The structural chart of master budget for airlines is improved. Methods for preparing budgets are given by examples. Suggestions about how to reinforce budget control are also discussed. Finally, suggestions are given to improve performance rating system of master budgeting management. Balanced scorecard is used to design the rating system, and Analytic Hierarchy Process (AHP) is used to set weight for the indexes. It also proposes suggestions for improve policies for encouragement.