Study On Performance Of Merger And Integration Of Chinese Airlines Based On The Core Competence

The activity of merger and acquisition is very frequent at present. The companies caused the sixth wave of mergers and acquisitions all over the world, but in fact few truly succeed in m&a. The main reason is that companies don't implement integration effectively after the merger. Therefore, the enterprise should pay attention to integrate after the merger and implement comprehensive integration. Finally they can obtain the desired effect of merger and acquisition.Based on the analysis of M&A integration theory, core competence theory and the content of merger integration in the airlines, the paper analyses the relationship between M&A integration and core competence detailedly. And thus it builds the index system for performance evaluation of merger integration of airlines from five aspects of a strategic integration, the integration of marketing, financial management,human resources integration and cultural integration. Furthermore, an empirical research is made on the case of China Eastern Airlines' merger of Shanghai Airlines to testify the effectiveness of the above-mentioned study. It concludes that merger integration can improve performance for a long time based on the core competence,increase the competitive advantage and promote core ability of airlines. And finally,some inspirations are drawn, and the following suggestions are put forward to promote the success of mergers and acquisitions of China's aviation industry: The m&a integration of airlines is critical to the success. The important goal of mergers and acquisitions integration should enhance core competence of the airlines. Airlines should select the companies whose skills complement or don't overlap with airline as the target of mergers and acquisitions to reduce costs of integration and airlines should comprehensively integrate.