Air passenger transport industry has been in a stage of rapid development in China, and achieved remarkable results from the civil aviation transportation market reforms in 2002. In recent years, the total transportation of passengers ranked second in the world, just followed the United States. The industry has become an important basic industry, and its strategic position in the socio-economic development has become increasingly evident. However, problems of air passenger transport industry happened prominent, in this context, this study of air passenger transport industry from the perspective of industrial organization to structure-conduct-performance analysis paradigm as the basic framework to explore the country air passenger transportation industry market structure.The main content of this paper is to understand the basis of industry in the development process of passenger transport, the market concentration index of industrial organization theory to analyze the current situation of the industry is an oligopoly market structure. Market behavior through the analysis and comparison of the performance is from the industrial macro and firm-level performance than the perspective of the market performance of air passenger transport industry, and it showed the market concentration, government regulation and other factors that affect the development of the main air passenger transport and air passenger transport industry. Our results showed that the high regulatory barriers and low economies of scale, with the high investment and growth model of development. In addition, the difference of air passenger transportation industry market structure and performance of the comparative analysis between China and United States was discussed. Finally, we study the current development of an integrated air passenger transport industry, as well as the development of experience in the industry of United States, and proposed the development of policies with the timeliness and relevance. |