Research On Aviation Fuel Cost Control Of China Eastern Airlines

In recent years,international oil prices have been on the rise,and many domestic airlines have resumed the measures of charging fuel surcharges on domestic routes.It can be seen that the rise of international oil prices has had a certain impact on the cost of fuel on domestic routes.China Eastern Airlines,one of the country’s three major state-owned backbone airlines,is also deeply affected by rising international oil prices.In the airline’s cost structure,the proportion of the highest fuel costs,generally around 25% to 30%,and increased costs will lead to corporate earnings hit for China Eastern airlines,how to find effective measures to control their own costs is particularly important,especially in the aspect of control fuel costs in order to create their own competitive advantage is indispensable.This paper focuses on the issue of jet fuel cost control of China Eastern Airlines under the background of the resumption of fuel surcharge collection.In the cost management theory,homework cost method,and the theory of risk management on the basis of relevant theories,study eastern airlines jet fuel cost,fuel cost control problems and reasons,activity-based cost method and theory of risk management theory basis,fuel cost control improvement measures are put forward,authors summarized the jet fuel project efficiency.Firstly,the process of jet fuel consumption and price control should be optimized to implement refined jet fuel control.Secondly,the focus is to improve the operation of flight personnel and reduce the use time of APU to reduce the cost of jet fuel and control the cost of jet fuel.Secondly,in the process of aviation fuel cost risk management and control of China Eastern Airlines,the hedging strategy of aviation fuel price should be used reasonably,the hedging risk management and control system of aviation fuel should be improved,and a new way of risk management and control should be opened up.Finally,relevant policies and personnel construction measures should be taken to alleviate the operational pressure caused by the rising cost of jet fuel.The research results of this paper also have certain reference value for China’s other two major state-owned airlines,namely Air China and Southern Airlines.