The Study Of Medium-sized Airlines Operating Costs

In the rapid development of three major airlines, led the way and got the large share of the market, accounted for Hainan Airlines, Sichuan Airlines, Xiamen Airlines, Shenzhen Airlines, represented by medium-sized airlines in the face of ground transportation network increasingly improved, such as the highway and the high-speed railway, the customer is diversion. In the surrounding, massive invasion of low-cost airlines in Malaysia, Singapore and other countries is just devouring market share, if you do not want to exit the stage on the aviation market as soon as possible to achieve strategic transformation, the implementation is different from the three aircraft differentiation strategy, and low-cost operation as the first, to establish their own unique brand, change the company’s operating policies and direction.The net profit of three major airlines fell sharply in2012, including China Southern Airlines is down more than40%while the medium-sized airlines, due to its system is not sufficiently, the comprehensive anti-risk ability is not strong, by the impact of a larger, more severely affected. In this storm, how to deal with the crisis, is to continue to Dances with Wolves, struggling to fight, or adjust its strategy structure, re-explore new growth point, which is placed in front of two medium-sized airlines Road. So many companies have made strategic transformation objectives to be turning the tide and try to make better.With the vagaries of the international environment as well as the relative stagnation of domestic economic development, the development of low-cost airline has become the development trend of China’s civil aviation future, even in the early days the name is not a low cost airline to show people should also be tried in a low cost attitude to operations. Airlines should vigorously through various scientific means to control costs, and supplemented differences in management development strategy, which is consistent with China’s national economic development needs of life, in line with the actual situation of the social environment. However, due to the Chinese aviation industry-specific policy environment, the establishment and development of truly low-cost airlines is very difficult, especially in obtaining traffic rights, time, route approvals, and policy support have considerable difficulty, so I tried to find the keys from the strategic transformation of the domestic medium-sized airlines, making use of its low-cost air than do not have the strength and resources to explore the medium and low-cost airlines take the feasibility of combining differentiation. I also hope that through this article, to collect and summarize the views of all parties for the development of the aviation industry to make some suggestions.This article of six chapters, each chapter following major elements:Chapter1is introduction. Introduces the research background and significance of research ideas and framework, and briefly describes the methods of this thesis.Chapter2is literature review. Mainly from the domestic and foreign scholars on how to control the cost of airline theory, the experience of learning to control costs and to combine the status of domestic airlines summed especially medium-sized domestic airlines to reduce costs.Chapter3is overview the operations of domestic and international medium-sized airlines. Major analysis about the performance of China’s three major airlines、Sichuan airlines、Xiamen airlines as well as Southwest Airlines、 Ryanair and Airasia in2012,elaborated with different airlines operating model in the face for the same complicated economic performance under different circumstances.Chapter4is analyzes the cost of medium-sized airlines. Detailed analysis of the impact of medium-sized airline operating costs of the main factors on China’s medium-sized airlines facing the external environment from the macro, meso angles analyzed, and medium-sized airlines limitations on cost management conducted in-depth analysis.Chapter5is case study. A case study analysis of its low cost and differences in management approach to achieve rapid development of the various methods and measures, and the company’s success through the A medium to other domestic airlines provide inspiration for future development. Chapter6is medium-sized airlines operate our cost control and build a new business model. Reduce airline operating costs discussed method measures and medium-sized airlines try to build new business model.The main contributions and inadequate:The main contributions.The author, as an airline practitioner, fully aware of the medium-sized airlines to survive the vagaries of the economic situation is not easy. After reading a lot of literature, the author in this paper establishes a model for medium-sized airlines. I hope this paper, can cause the attention of the medium-sized airlines, and through the use of this model allow better development of medium-sized airlines.The inadequate:Through writing this paper, the author found himself is still poor on the financial management professional attainments, he can’t give more profound ideas and the method of reduce cost. In the future,he hope to study more about the professional knowledge,and make more bright spot in his work.