The Study Of HA Holding Company's M&A Performance Based On The Perspective Of Industrial Evolution

M&A is very popular in today's business world and it has become a critical way for companies to achieve their development strategies.In recent years,there are many cases in air transport industry that major airline corporations merger small airline enterprises.However,under many takeover activities,the outcome of M&A varies among airline companies due to the industry characteristics of airline transport.Some can increase their business scales and obtain a larger market share,but the long-term performances of a few others may be negatively affected caused by integration failure or other factors.Therefore,it is of great significance to conduct an in-depth research into the M&A cases in airline transport industry.This research takes the M&A activities of HA Holding Company as object of study and analyzes the impact of M&A activities on its performance.In the relevant literature,there are only a few discuss the M&A cases in the process of industrial evolution,thus a ‘industrial evolution stages — M&A motives — M&A performances' research framework will be established based on previous studies in order to analyze the M&A cases of HA Holding Company.Finally,research results will be discussed and relevant recommendations will be made.This research divides the development stages of civil aviation industry based on market concentration ratio CR3 indicated by the volume of passengers traffic of three companies.The development of the civil aviation industry in China is restricted to some extent due to the strict government regulation,so it is concluded that the civil aviation industry in China is in the third stage — the cluster stage.As a result,this study uses the appraisal indicator in the cluster stage,works out the M&A performance 2009 and 2016 year's score of HA Holding Company by mainly employing the analytic hierarchy process to conduct weighted calculation for the established indicator system of the third stage.It is discovered in this study that the M&A performance score of HA Holding Company in 2016 is much higher than that in 2009 with the main manifestations of increased debt-paying ability and good profitability.However,there is a lack of development motive and the company performance is greatly affected by M&A activities.So,it is necessary to enhance the industrial synergy effect,and in order to the unique competitive edge to offer the difference of product and service.To sum up,the M&Aperformance appraisal system need to be improved and measures should be taken to deal with problems about the future development of airline companies and the integration after M&A.