Research On The International Route Revenue Evaluation Model Of M Airlines

With the integrated development of global economy,the growth rate of foreign trade in China is always in the leading position in the world,and the civil aviation transport industry has also been booming.Under this market environment,the competition of international air passenger transportation market is further deepening and how to improve the operation quality of international airlines has become a core issue.At present,in addition to Air China,China Eastern Airlines,China Southern Airlines and other large airlines,medium sized airlines in China are rising rapidly in the international passenger transportation market and try their best to seize high-quality aviation rights and market share to strengthen the business vitality of enterprises “going abroad”.The headquarter of M Airlines is located in Chengdu,Sichuan Province,and the fleet size has reached more than 150 sorties until the end of the 2019 with the international route network covering Asia,Europe,Africa,Oceania and North America and more than 50 routes in total to 34 countries and areas.In 2019,the input transport capability of international route has reached 18.7% of the total transport capability.However,the revenue of international routes do not continue to rise with the growth of scale and how to accurately evaluate the income situation of existing international routes to put forward reasonable route management suggestions has become the key research direction for Airlines M to explore the international market.This paper takes M Airlines and does the research on how to establish a set of complete international airline revenue evaluation models,which will provide decision basis for M Airlines to formulate specific measures for international route planning.The structure and content of the paper are shown as follows.With the integrated development of global economy,the growth rate of foreign trade in China is always in the leading position in the world,and the civil aviation transportation industry in China also achieves vigorous development.Under this market environment,the competition of international air passenger transportation market is further deepening and how to improve the operation quality of international airlines has become a core issue.At present,in addition to Air China,China Eastern Airlines,China Southern Airlines and other large airlines,medium sized airlines in China are rising rapidly in the international passenger transportation market and try their best to seize high-quality aviation rights and market share to strengthen the business vitality of enterprises “going abroad”.The headquarter of M Airlines is located in Chengdu,Sichuan Province,and the fleet size has reached more than 150 sorties until the end of the 2019 with the international route network covering Asia,Europe,Africa,Oceania and North America and more than 50 routes in total to 34 countries and areas.In 2019,the input transport capability of international route has reached 18.7% of the total transport capability.However,the revenue of international routes do not continue to rise with the growth of scale and how to accurately evaluate the income situation of existing international routes to put forward reasonable route management suggestions has become the key research direction for Airlines M to explore the international market.This paper takes M Airlines and does the research on how to establish a set of complete international airline revenue evaluation models,which will provide decision basis for M Airlines to formulate specific measures for international route planning.The structure and content of the paper are shown as follows.Firstly,the thesis introduces the background and significance of the choice of topic and concludes the deficiency of current situation of the research on the revenue of domestic and foreign airlines according to reading the related literature to formulate the research boundary hypothesis and method of this paper and point out the research content and framework.The thesis builds theoretical basis for research according to name explanation and theory introduction which is related to the revenue of airlines.Based on the current situation of M Airlines’ problems in the international route revenue,an international route revenue evaluation model is established:(1)The thesis provides theoretical basis of financial indicators based on the cost-volume-profit analysis,which means that whether flight hour revenue can cover the corresponding relationship of related costs,set scoring conditions for financial indicator analysis of routes and complete the basic evaluation stage of revenue evaluation model;(2)The thesis uses the PEST method and SWOT model to conduct evaluation on the influence factors of M Airlines’ international route revenues in four aspects: strategic environment,external environment,development potential and internal factors and complete the comprehensive evaluation stage of revenue evaluation model;(3)According to the Delphi expert consultation method,the scores of the two evaluation stages were weighted and summed.As to achieve a set of international route income evaluation model,which takes the benefit index as the core and comprehensively considers the financial index,strategic positioning,economic environment,competitive power,development potential and other factors of the route.After that,the thesis takes example application for this model,which takes the data of CTU-MEL and CTU-TSA into the model,and makes comparative analysis for the verification results.Finally,the thesis summarizes the research results of the international route revenue evaluation model,and analyzes the limitations and prospects.This research on the international route revenue evaluation model of M Airlines has got rid of the traditional mode that takes financial data as the only index of revenue evaluation,adds analysis indicators such as macro strategic policy,external competition environment,route development potential and internal environment and other factors and use the score and weight to quantify the revenue index.This model has the maneuverability though verification,and provides a certain decision-making basis for resource utilization and route revenue management in the international market of M Airlines.The author hopes that this thesis will have certain reference function for the same scale airlines in the same domestic industry to evaluate international route revenue.