| Competition in the global air transport industry has become a competition between the hubs. In contrast to the point-to-point route network, the hub network has a cost advantage of economies of scale and economies of scope and density economies which means maximize revenue for airlines.The hub also has its own disadvantage that the airlines need to face the hub airports in a series of complex issues and high operating costs, including with the basic infrastructure conditions and operational complexity. To build a hub, there must be a strong local and transit market demand, convenient location, hardware in line with the Hub and Spoke (HSS) concept, such as infrastructure; and software, such as immigration policy, it is more important to have a powerful based airline.Airport and airline is closely connected to the air transport value chain, they share very close relationship with the mutual cooperation. For hub airports, it is particularly important to strengthen cooperation with the airline, aviation hub construction not only requires the airport provides a powerful ground equipment and facilities, and also require airlines to adjust the route structure to build a hub-spoke route network. Without their close collaboration, the powerful radiation aviation hub airport will never been truly built.Compared with foreign advanced civil aviation industry, The Civil Aviation industry of China is at a distinct disadvantage in the global market competition, we haven’t even yet formed an international aviation hub. The construction of China’s aviation hub is just started; there is a serious shortage in transit facilities, operational processes and transit environment. There are many obstacles to make Beijing, Shanghai and Guangzhou Airport become major international aviation hubs with complete functions and global radiation. Compare with hub construction of Beijing Capital International Airport and Shanghai Pudong International Airport, the hub construction Guangzhou Baiyun International Airport are fully behind in market demand, international route network, airport facilities, and the supporting policies.China Southern Airlines(CSN) operates the largest fleet, most developed route network and largest passenger capacity of any airline in The People’s Republic of China. After years of exploration, China Southern Airlines established a hub strategy, and Guangzhou is equipped with the best building conditions. Guangzhou is the most convenient hub between China’s mainland and Oceania, China Southern takes the lead in domestic route density in China. Through the implementation of Australia strategic, China Southern Airlines made a breakthrough by demanding different branches of the company work together to transport passengers for Australia route, thus became the first carrier between the Chinese mainland and Australia. With the launch of the international routes of the Eurasian region, China Southern has laid a foundation to build for the international aviation hub between Eurasia and Oceania.In this thesis, the author pointed out China Southerns advantage of the location, route network, the sales network, market share, flight banks, transit rate, as well as its disadvantage in the international route network, the efficiency of resource allocation, operational management and brand awareness. The thesis analyzed facing opportunities challenges, proposed centralized, vertical collaboration and differentiation strategy and a vision of building international aviation hub with Chinese Lingnan characteristics to connect Eurasia and Oceania,_which has a practical value to guide the construction of China Southern Guangzhou international aviation hub. |