Northern Multi-tiered Fare Management Studies

The aviation transport service is a Hi-Tech, risky trade with high investment. It got fast development in China in the past ten years. But for a long time, the government adopted to the controlling policy strictly to aviation. The market-oriented degree of passenger traffic of civil aviation is relatively low. It is difficult for the airline to grow up as the market main body that can be managed independently, assume sole responsibility for its profits or losses.Along with process that china joined into WTO, all kinds of promises will become realistic step by step. And the domestic airlines in china now stand a bout front to front. How to hold advantaged status in this competition in first and how to stand the competition of economy strength after foreign airlines enter into china that is a urgently problem that we must meet and resolve. Under the government's guide, the nine domestic airlines recombinated in 2002. The three air transportation groups have been established. The reform makes the civil airlines larger and stronger. It is more important that these enterprises will become real market main bodies with own management philosophy and development strategy. They will have the strength of participating in international competition.As one of the participants of the reform, China northern airlines(CNA) gets the valuable opportunity of great-leap-forward development through China Southern Airlines(CSA). However it also faces market competition even more. As one of the nine original civil airlines, CNA has a large plane-team, perfect airlines network and advantages of safe supportability. But it has a lot of problems in recent years, including the heavy historical burden, lacking of marketing, and managing improperly etc. Especially CNA had sunk into the predicament of market depression, and its benefit has come down progressively, the competitive power is reducing.Make a comprehensive survey in some aviation company that has high profit .We can make a conclusion that they wined by hanker for benefit and efficiency. So we must occupy wide market space and wide passenger quotient as soon as possible. Yield management system is an effective tool that can help airlines to obtain the most income that have been proved by fact. Therefore we need to understand the Yield management system in-depth, take apart the core of Multi-grade Fare" and "Multi-seat control", and serve for china civil aviation.This paper simply analysis the Multi-grade Fare system in Yield management system, discuss the rationality of value system by analysis the market condition ofdomestic civil aviation passenger condition, and on passenger demand character, and Demand Flexibility theory. Bring to establish the Multi-grade Fare system that adapt to china civil aviation passenger transport, use the advanced theory and way of yield management from foreign airlines.