Study On Cost Management Of Private Airlines From The Perspective Of Value Chain

The aviation industry has always been an important industry and an advanced mode of transportation for China’s national economic and social development.However,since 2019,airlines have suffered serious losses due to the slowdown in industry growth and the impact of the epidemic.Among them,big airlines are faced with management problems,while small airlines are faced with survival problems.However,under the situation of overall loss in the civil aviation industry,private airlines have shown extraordinary resilience.Chunqiu and *ST HNA is the only profitable listed airline in 2021.Whether private airlines’ response to the epidemic is sustainable and scalable is a matter of concern.Therefore,the study on how to reduce costs and improve income of private aviation can provide direction for cost control of civil aviation industry.By summarizing and analyzing the theory of airline cost management,value chain theory and the existing research results of Chinese civil aviation transport enterprises in the field of value chain cost management,this paper finds that the current academic research on the value chain cost management of civil aviation transport enterprises mainly focuses on the cost suggestions of full-service airlines.The lack of research on the cost of private airlines such as Spring and Autumn and other airlines is not conducive to the discovery of cost advantages of private airlines.This paper studies the value chain cost of private airlines from external,internal and competitor aspects,finds out the similarities and differences in cost management of private listed airlines,and builds a cost management framework suitable for private airlines.As *ST HNA is in the stage of bankruptcy and reorganization,this paper analyzes and studies the impact of value chain cost management of Spring Airlines,a representative of private airlines,based on the annual report data of Spring Airlines,Air China,China Eastern Airlines,China Southern Airlines and Junxiang Airlines from 2019 to 2021.Based on the differences between private and state-owned enterprises,this paper improves the cost management framework of private airlines’ value chain.Based on the analysis of the whole value chain,it focuses on the competition perspective in the external value chain and analyzes the advantages and disadvantages of Spring Airlines’ cost management from the perspectives of the same industry and substitutes.It is found that Spring Airlines gives full play to the advantages of flexible mechanism of private enterprises.Based on its advantages of domestic routes,Spring Airlines constantly reduces costs from the aspects of fleet,manpower and management,so that the cost management of airlines is more scientific and standardized,which can further reduce costs.Meanwhile,it constantly expands business scope,increases revenue and better serves consumers.It brings some reference to other domestic airlines.