HN Airlines Cost Control Improvement Program Design

It’s been 100 years that civil aviation industry has developed Since 1914 that the first airplane was operated for commercial purpose.From the starting single-engine-propeller to current wide-body-turbojet,the flight range has developed from hundreds of miles to ten thousands miles above and the civil aviation industry is continuously developing.After all,civil aviation is always highly labor and capital intensive,with its products homogeneous.As competition of air transportation market increasingly intense,as well as under the impact of G-series high-speed train,the ticket price level continues to fall.Up till now,little room is left for airways for revenue and cost control is the key theme.HN Airlines,as an air carrier of representative value,has grown into the fourth largest airlines in China,upon more than 20 years’ development.However,as part of the competition of air transportation market increasingly intense,the weak cost control capability inevitability hinder its continuous advantage.In this paper,such defaults as inaccurate cost information,coarse control measures and lack of importance attached to cost control have been identified,based the compilation and collection of internal and external information,and upon the analysis on the structure,mode and characteristics of HN Airlines operating cost.Upon deep analysis into the existing defaults of HN Airlines cost control system,certain conclusions,such as inappropriate cost calculation method,control measures that not based on cost driver and lack of training and cooperation,have concluded.Aiming at eliminating the root causes and based on the theories of cost control and cost driver analysis,four aspects of cost control organization,cost calculation method improvement,establishment of information collection and analysis mechanism and cost driver and its control measures,have been pointed out to formulate the improvement plan.At last,series of supporting measures have been formulated to assure the efficient and effective implementation of the improvement plan.