The Research On The M&A Performance Of China Eastern Airlines And Shanghai Airlines

With the development of economy and increasingly fierce market competition, lots of enterprises choose the way of merge with other companies to improve economic benefit and enhance its capability. With merge cases increasing day by day, M&A of air transport industry is increasing. Its progress can drive other related enterprises development. But, benefit was different after M&A of aviation enterprise, according to the industrial background of aviation enterprise, some companies can enlarge scale and occupation rate, which didn’t exclude individual aviation enterprise because the unreasonable subsequent integration or other factors influence on long-term performance. So, further study M&A of air transport has great significant.,merge of aviation enterprise need increasingly perfecting based on industry background.This thesis choose the merging of China Eastern Airlines(CEA) and Shanghai Airlines(SA) as content, because of its particularity, CEA is one of the three key aviation groups in large air transport enterprises, and it is important for this industry. Many experts are doubt for its future, it is desert to research. Not only that, but CEA and SA are both operating bleak in the same time, their joint is speculated and concerned by investors and community.This thesis was based on complete process of the merging of CEA and SA. On the basis of absorption and merger, M&A performance, the theory, concept, this thesis thoughtful analyzed the case of CEA merger with SA, and then summed up experience and enlightenment. During the case study, this thesis first introduced the motives, business condition of CEA and SA. Then used of event-study methodology and describe shock prices to analyze its short-term performance. Choosing the finance date of six years to analyze its long-term performance and compare with other airlines. Besides, the thesis used of non-financial indicators to objective and complete analyzes the case, and many aspects showed that performance was well after merger. Finally, the thesis proved it was a successful merger case. At last,the thesis summed up the successful experience and enlightenment,. Meanwhile the thesis referred foreign low-cost airline to give constructive suggestions for the development of CEA in the future.