| Low-cost airline,also known as "budget airline",is another mode of operation in the aviation industry,which is different from full-service airline and regional airline.The low-cost airline model first appeared in the American Southwest Airlines in the 1990s.In a short decade,the market share of the airline increased by more than 20%.Southwest Airlines maintained profits under the background of the recession of the American airline industry with its low-cost strategy,and gradually established its own advantages for other airlines around the world to follow.Low-cost aviation appeared late in China’s aviation market,but the market prospect is good,there is a huge development space and development potential.With the continuous improvement of China’s economic strength,China continues to achieve technological innovation and breakthrough,coupled with various policy support from the government,these conditions are conducive to the further development of low-cost aviation in China.C airlines is the first company in China located in low-cost airlines,founded in 2005,was founded in the early it suffered a lot of questions,don’t be valued by the industry and the public,but its alignment with their market positioning,with the "make people can fly up" philosophy,constantly improve their market position,to enhance their competitive ability,Finally,it was widely recognized by the society.While learning from the successful experience of foreign low-cost airlines,C Airlines gradually adjusted and improved its low-cost strategy based on the actual situation of China’s market,gradually expanded its enterprise scale,and maintained a continuous profit for more than ten years among a number of domestic low-cost airlines.Based on Professor Michael Porter’s competitive strategy theory,this paper firstly introduces a series of competitive strategies and low-cost operation strategies used in the aviation industry.Secondly,the situation of domestic and foreign low-cost airlines is summarized,and the operation environment of low-cost airlines is analyzed from four aspects:political and legal environment,economic environment,social and cultural environment,and technical environment,and the operation strategy,market share and revenue of domestic and foreign low-cost airlines are compared.After that,SWOT analysis method and Professor Porter’s Five Forces Model are used to analyze the competitive environment in which the company is located,so as to make a strategy.Then,the cost structure and cost control measures are analyzed;finally from the aspects such as assets,revenue and cost analysis of the effect of the implementation of the strategy of low cost,points out existing deficiencies and puts forward Suggestions for improvement,including to speed up the flight hub construction,build strategic alliance actively,perfect the related risk management system,improve the operational efficiency of the fleet,and combing the good brand image. |
