Research On Aviation Fuel Cost Management Of Airlines In China

With the deepening degree of Chinese airlines internationalization, the change of the aviation fuel cost is driven hardly by international oil prices.At the same time, the aviation fuel cost accounts for a significant proportion in the cost structure of Chinese airlines, whose tiny change can affect the profit seriously. Besides, the pressure from fuel cost has become an obstacle on the developmentof Chinese airlines. Currently, Chinese airlines conduct further measures on aviation fuel hedging management and pilot operations to save aviation fuel, while there are still shortages in the comprehensiveness and of consumption management and aviation fuel hedging management including their systematization. Therefore, it is necessary to construct the aviation fuel cost management system on the basis of scientific theory.Firstly, this thesis analyzes the theory about Cost Management, Activity Based Costing(ABC) and Risk Management.Secondly, this thesis makes detailed analysis of the current situation of aviation fuel cost management in airlines at home and abroad, summarizes the experience of foreign airlines and points the problem existing in fuel cost management of Chinese airlines and analyzes the reasons.Thirdly, this thesis constructs the aviation fuel cost management system by the combination of cost management, ABC, risk management, which includes aviation fuel consumption management system and aviation fuel price management system. Consumption management system includes management subject, management object and management process. Price management system includes manage organization, manage information, manage process and manage culture. Fourthly, this thesis chooses China Eastern Airlines Corporation Limited as an object to carry out the case study to make recommendations to improve its aviation fuel cost management system. At last, this thesis makes a conclusion and describes the blueprint of aviation fuel cost management.This article makes use of scientific theory such as Cost Management, Activity Based Costing(ABC) and Risk Management to construct aviation fuel cost management system aim to provide references for aviation fuel cost management of Chinese airlines.