Analysis On The Cost Management Of S Airlines

With the development of tourism and logistics,China's air transport industry also ushered in a huge opportunity.According to the CAAC,by 2016,China's total Air Transportation Turnover will reach 96.251 billion tons of km,an increase of 13.0%over the previous year.It is expected that,During the 13th Five-Year Plan,the total Air Transportation Turnover in China will increase by an average of 11.06%annually,and it will reach 145 billion tons of kilometers by 2020.Influenced by the stable growth of per capita income,gradual upgrading of consumption,transformation of economic growth,upgrading of industrial structure and other factors,China's aviation market has great potential.However,the high cost of the air transport industry has brought a higher amount of fares,making the air transport market share in the whole transport industry is less,the annual Air Transportation Turnover is far less than the railway and highway.At the same time,the high cost has also compressed the profits of airlines,has become a stumbling block to the development of airlines.S Airlines as a typical local full service airlines,since its inception,the development speed has been fast,in the face of opportunities at the same time,it also will meet the threat brought by the development.74%of that domestic aviation market has been shared by China Airlines,China Southern Airlines,China Eastern Airlines and Hainan Airlines,and low-cost aviation is also rising under the strong support of the policy.In the fierce competition of China's aviation market,S Airlines in order to maintain their own competitive advantage,and to win more markets,needs to strengthen its ability of the cost management,optimize the existing defects.And S Airlines needs to do much better with the help of favorable policies and market economy,the development of enterprises to do better.In the process of development,S Airlines is also constantly exploring ways of cost management that are more suitable for the development of enterprises,and gradually realized that the traditional cost management method is no longer in line with the current cost management needs of enterprises,beginning to introduce the value chain cost analysis theory into the practice of cost management.This paper will use the value chain cost analysis theory to carry out a detailed cost analysis of S Airlines.The cost drivers and value-added and non-value-added operations of the various activities in the value chain are identified based on the enterprise strategy through a bid analysis with competitors,and the cost management measures taken by S Airlines based on the results of the cost analysis of the value chain are presented.It is pointed out that the value chain cost analysis method can help enterprises to adopt reasonable cost control measures,and finally get the effect and enlightenment of S Airlines based on the value chain cost management.It is hoped that the value chain cost management case of S Airlines can provide reference for other full-service airlines in cost management,and play a role in promoting the healthy development of China's civil aviation industry.