Domestic Airline Competitiveness Evaluation Based On Principal Component Analysis

With the further development of air transport industry, in the context of economic globalization air transport traffic increases the total transport. Domestic aviation market is gradually opening up, with the rapid development of international air transport liberalization. Since China's accession to WTO, the air transport industry is facing more and more serious challenges, and also the immeasurable opportunities . in the short term Domestic airlines must know how to enhance their international competitiveness and how to survival in the serious development, it has become a serious problem which has to be deal with.This paper established the model of the domestic airline competition through in-depth analysising the fare policy, business management, service quality and brand name, route management, fuel prices, human resources, operational efficiency, market performance, customer relations and corporate culture ect. Those ten factors influence the competitiveness of airlines. In the mean time, the model can reveal the competitive capacity of airlines between the interaction of the internal mechanism. Based on the three established model , they include potential competitiveness evaluation model, real competitiveness evaluation model and integrate evaluation model; In this paper the airline competitiveness evaluation index system has constructed, these include five class: financial operation, firm size, operational efficiency , quality of service and the human resource.The model result can not eliminate the impact of subjectivity of sample data for th past, leading to evaluation can not truly reflect the level of management . In this paper it based on statistical methods principal component analysis and factor analysis and on domestic airline operations data and production data from 2007 to 2010, finally this model obtained the result of the empirical researchThrough analysising the empirical results, on one hand, it verify the science and effectiveness of the airline competitive evaluation theory and evaluation method; on the other hand, the objective empirical results can reflect the actual level of domestic airline company. Finally, by comparing the results of different methods which also Appliy to the airline competition, the research result can verify that the principal component analysis method is feasible and effective method. The airline competitiveness evaluation index system is reliable.