Small And Medium-sized Airlines In Control And Competition In The Context Of Competitive Strategy

After the recombining of the three biggest Airline Groups, the format of the aviation transportation market has been changed greatly, the big airline groups have obtained the main market resource. At same time, the Chinese Government is deregulating the aviation market. This policy increases greatly the possibility for those enterprises which want to enter the aviation fields, In this situation, what strategies the independent operated small and medium size airlines should take to maintain and insure their competitive advantage?The research shows two measures to solve the problem: Firstly, the small and medium size airlines should preferentially control the cost, try to maintain the competitive advantage by establish low cost airlines. Secondly, these airlines should exploit the developing and living spaces by prior developing regional flights. What we are concerning is do these measures work thing out?After comparing the competition and regulation environment of Chinese aviation transportation market, the essay analyses the advantage and disadvantage of the small and medium size airlines; points out that "small doesn't mean weak"; demonstrates the strategies the small and medium size airlines should take such as: advanced cost control, niche, compressing development, capital development and transverse combination. Integrating the competition and regulation condition, the essay also analyzes the applicability of the strategies mentioned above and shows the small and medium size airlines can be very important in the historic time when China is becoming a strong aviation country in the world.Basic conclusion: The developing strategy of the small and medium size airlines should be a complete system. They should mainly use the niche and compressing developing strategies, with the capital development and transverse combination strategies as back up. Now the small and medium size airlines should not use the low cost as their main developing strategy. The main reason is that the amount of controllable cost is very low under present domestic administrative regulation. There are very limited spaces to decrease the cost. At same time the aviation market doesn't...