Research On The Cost Leadership Strategy Of Spring Airlines

With the continuous development of China’s economy and the improvement of people’s income level,the demand of Chinese consumers for long-distance travel is on the rise,and the civil aviation transportation industry has a bright future in China.Low-cost airlines are highly competitive in China because they fit in well with Chinese consumers who are more sensitive to price.Combining with the background that low-cost air transportation is still in its infancy in our country,this thesis takes Spring and autumn Airlines as the object of study and studies its cost leading strategy,which can provide reference for other domestic airlines of the same type and also bring certain reference value to the development of low-cost aviation industry.In this thesis,literature analysis,case analysis and comparative analysis are adopted to analyze the external environment and internal resources of Spring Airlines,explore the motivation for the implementation of cost leadership strategy of Spring Airlines,and elaborate the key measures for the implementation of cost leadership strategy of Spring Airlines.Then,it analyzes the characteristics of its cost under the low-cost operation mode.By calculating the correlation between major cost items and business volume,as well as horizontal and vertical comparison,it finds the differences between Spring Airlines’ cost and expense compared with other full-service airlines.After analyzing the characteristics of the cost,it compares the indicators of the three state-owned airlines and other low-cost airlines respectively from the financial and non-financial perspectives,evaluates the performance of the implementation of the cost leadership strategy of Spring Airlines,and summarizes the improvement of the competitiveness of the company by the cost leadership strategy of Spring Airlines and the deficiencies in the implementation process.Through the research,it is found that the cost leadership strategy of Spring Airlines has achieved remarkable results.The main costs of Spring Airlines are significantly lower than those of traditional full-service airlines,and the cost control ability of Spring Airlines is in the leading position in the industry.In addition,the global novel coronavirus epidemic has limited impact on Spring Airlines,and Spring Airlines has more obvious advantages in cost control than other airlines during the epidemic.However,in the process of implementing the cost leadership strategy,Spring Airlines also has some problems,such as too conservative use of funds,low level of consumer satisfaction,and easy replication of low-cost operation model.The company needs to further improve its ability to use funds,brand and enterprise construction,so as to enhance the implementation effect of the cost leadership strategy.