Research On Strategic Cost Management Of A Airlines

Unlike the traditional aviation industry,the advanced aviation industry has become more complex.The reason is that many enterprises are very optimistic about the great potential of the aviation industry,so more and more enterprises begin to join the aviation industry investment team.However,due to the limited market resources of the aviation industry,the excessive participation of private and foreign capital to a certain extent aggravated the competition in the aviation market,leading to the development of today's airlines are hindered.As far as the current status of the development of airlines is concerned,even airlines in response to fierce market competition have tried to reduce fares,but it is also difficult to restore the situation.Based on the status quo of the development of airlines,it is obviously unrealistic to improve the status quo of the company simply by establishing an industrial chain.At the same time,because the airline is different from other enterprises,the investment cost is high,the risk is big,in order to improve the status quo of the development of airlines,airlines must make up for their own shortcomings in cost management,reduce investment costs,improve technology level,enhance market competitiveness.The purpose of strategic cost management is to effectively reduce the investment cost of airlines,from many angles,through the value chain to identify the inappropriate cost management of airlines,and then combined with the deficiencies found to dig out the underlying reasons,and then formulate reasonable improvement strategies,so as to conduct cost management.To enhance the competitiveness of airlines in the international market.In this study,to reduce the cost of airline investment as the fundamental,the value chain strategy to carry out the cost management of airlines.In order to improve the practicability of the whole theoretical research,this paper takes Airline A as an example,analyzes the current situation of cost management of Airline A,digs out its shortcomings,combines the excellent experience of foreign countries,and combines the actual development of Airline A,so as to formulate a reasonable cost management strategy,and then upgrade Airline A.The overall competitiveness of the company.