China Aviation Oil Supply Corporation Distribution System Innovation Research

With China' s entering into the WTO, Chinese economy are adjusting to the general principles of WTO gradually. Thus, profound changes will occur in Chinese aviation oil market, which plays a significant role in the development of Chinese Civil Aviation. According to the made-promise by the WTO, there will be three changes in the principles in the market of fully-produced oil. First, reduction in tariff; Second, the abolishment of non-customs barrier; Third, opening the market step by step. Within 3 years after entering the WTO, our government allow the foreign ventures to set their hands on the selling of the retailed oil. Within five years, allow them to deal in the wholesale of fully-produced oil. By then, the foreign petrolic companies will enjoy their commercial and agential rights. The opening of the oil agential market poses the greatest challenge to the Chinese oil companies which provides aviation oil.China Aviation Oil Supply Company (CAOSC), acts as the only one domestic company, which combines purchasing, conveyance, supply and selling together. It also occupies the unique monopolistic position. Similar to other companies, CAOSC has 7,630,000,000 capitals. Due to the complexity of the internal capital, it ishardly called as an economic entity which is linked effectively under the economy rules. CAOSC was founded in February, 1990. CAOSC partially fulfils the government' s functions. The aviation oil managerial system includes purchasing of resources, conveyance, storing and testing. This system played an active role in the certain historic periods. However, with the speeding up of the development of the market system, the problem, brought about by this system, seemed to become prominent. Viewing from the supplying system of the aviation oil, and owing to the lacking of restrictions of the aviation supply market, two biggest petrolic monopoly communities have to comply with the petroleum price set by the government. Although the affluxing market of aviation oil is run by CAOAC and other regional aviation companies, each airport has only one aviation oil company to supply it with aviation materials. The aviation companies have no rights to make their choices. Therefore, we must carry out reforms in the aviation oil supply system. By means of importing the market competition mechanism , it will oblige the aviation oil supply companies to reduce their costs. In the meanwhile, the price of the aviation oil will be reduced. The aviation oil supply companies will improve their efficiency and the quality of their service, in order to keep up with the development of Domestic Aviation Transportation.By analyzing the present condition in the aviation oil selling system in the article, learning some reformatory experiences from the foreign aviation system and taking CAOSC as an example and applying the basic rules of marketing, the article makes creative research of the selling system in the aviation oil field and put forward some transitional schemes about the aviation oil selling. I want to provide some available references to our domestic oil supplying companies.