Research On Airline F Business Strategy

China airline services have been rapidly developing since Chinese economicreform. Since2005, China airline service has become the second large airlineoperating regime, which brought new life to the airline industry. As governmentsmet to set the standards and scope for an emergent civil air industry, China hastaken a position of maximum operating freedom. During the11th five-year plan,our civil aviation successfully transitioned under Financial Crisis, taking the leadto recover and having incremental revenue and improvement.China domestic air travel has survived largely through state support,whether in the form of equity or subsidies. The airline industry as a wholebecoming a deregulated market, increasing innovative aircraft manufacturingtechnology, and more competitive low-cost carriers proliferation have been thekey factors of transforming civil aviation. China has seen incremental ai rlinesstart up with Chinese domestic policies and local government support. This hasproduced far greater competition than before deregulation in civil markets;high-speed railway’s rapid growth has been vital impact to national air travel.Along with higher growth of international airlines joining in, the competitionamong Chinese airlines and International airlines proliferate. Opening upinternational routes to further competition would be a comparative challengewith higher standards. Partial of the development strategies cannot meetrequirement of current demands of the markets. Airline financing is quitecomplex, since airlines are highly leveraged operations. Not only must theypurchase (or lease) new airliner bodies and engines regularly, they must makemajor long-term fleet decisions with the goal of meeting the demands of theirmarkets while producing a fleet that is relatively economical to operate andmaintain.This research has summarized the current situation of domestic and foreignairlines operating strategies, also detailed analyzed by political and theory pointsof view as well as Macroeconomic environment and industry competency,furthermore, which modeling Airline F in a consistently competitive marketenvironment with its briefing of historical records, current situation, existing issues and key factors. By SWOT analysis, this research analyzes the essence ofAirline F’s position in air industry, competitive advantage, developmentdisadvantage, strategy opportunities as well as threat. In order to set new trendand operating direction for Airline F, the research should be a reference toguidance. Base on competitive advantage theory and SWOT analysis, theresearch refers that Airline F needs to rely on its strategic regional position in th eaviation market to select a more advanced competitive strategy. Full-serviceairlines have a high level of fixed and operating costs to establish and maintainair services: labor, fuel, airplanes, engines, spares and parts, IT services andnetworks, airport equipment, airport handling services, sales distribution,catering, training, aviation insurance and other costs. Thus all but a smallpercentage of the income from ticket sales is paid out to a wide variety ofexternal providers or internal cost centers. Therefore, operating cost down,improving to a high level of service, establishing a continuing efficiencyimprovement from the major aircraft manufacturers, the expanding d emand fornational air travel, partnership with other capable airlines, expanding salesnetwork, targeting network business module, building up solid regionaladvantage, raise corporate core competency. This research suggests that upgradeservices to merge with a better business module while a very much goodobservation to Airline F for its future marketing strategy and risk controlconsolidation to achieve higher economy and efficiency.