Research On The Performance Of Mergers And Acquisitions And Restructuring In The Aviation Industry

As the American economist Stigler said,"there is almost no one that is not in some way,to some extent,using the application of mergers and acquisitions and development throughout the famous large enterprises in the United States." With the large-scale reorganization and merger of civil aviation enterprises in the world,the capital operation of civil aviation enterprises in China is in the ascendant at present.Among mainstay airlines,local airlines,and private airlines,various forms of capital operation,such as listing,merger,acquisition,share-holding system transformation,separation,and divestiture of company control,have emerged one after another.Reorganization and merger has become an important means and development trend to improve the competitiveness of civil aviation.Throughout the development process of world civil aviation transportation,we can see that the history of civil aviation development is the history of reorganization and mergers and acquisitions.With the globalization of the economic environment and fierce market competition,the continuous reorganization of airlines has long been a powerful means of competitive advantage of large airlines.From the practice of foreign countries,there are two important ways for airlines to operate and develop: one is to improve the management,enhance the effectiveness of internal resource allocation,and enhance the competitiveness of airlines.The other is to restructure and expand through the capital market,which is a wider scope,a higher level of resource reallocation.In this paper,Air China Shenzhen Airlines merger and acquisition as the research content,analyzed the various aspects of the merger and acquisition motivation,and to explore the key factors affecting the success of the merger and acquisition.This paper holds that the motivation of merger and acquisition in civil aviation industry mainly includes: coping with competition pressure,obtaining strategic resources,realizing synergy effect,solving financial distress and government's policy needs;in the process of merger and acquisition,Legal regulation,fair valuation,and effective competition have a significant impact.This paper is based on a series of complete processes for international aviation to increase its shareholding in Shenzhen Airlines,and to completely analysis the mode of merger and acquisition and its culture based on the theory and concept of merger and acquisition performance.This study,first of all,to launch and introduce the international airlines and Shenzhen Airlines,their respective business situation of mergers and acquisitions.Then the stock price description is used to evaluate the short-term performance.Select 5 years of financial indicators before and after the comparison in order to analyze its long-term performance,and horizontal comparative analysis with the industry.In addition,combined with non-financial indicators for an objective and complete evaluation of the merger performance,many aspects show that the performance has improved after the merger,the final conclusion that the merger is relatively successful.Finally,the paper summarizes the successful experience and enlightenment of the merger of International Airlines with Shenzhen Airlines,and puts forward some constructive suggestions for the future development of Air China.But the article still has the insufficiency,based on the merger motive and each influence factor,regarding the promotion civil aviation industry merger and acquisition the effective policy suggestion will be the further research direction.