Research On The Pricing Mechanisam Of Airport Based On Platform Economy And Management Enlightenment Obtained

As the plane been used from the military to civilian, as well as the improvement of aircraft performance, the airport’s functions has undergone a great changes, it changes from the aircraft taking off and landing place to an important pillar industry of intensive labor, capital and technology of the national economy which contains the retail, parking, air traffic control, real estate and tourism. It has play a decisive role in industrial chain of the air transportation, and it development level represents a country’s comprehensive strength and modernization level. Now our country is a civil aviation great nation, but it is far from civil aviation power. This gap largely as a result of the big gap in civil aviation transport enterprise’s strategy, management and operations between China’s and some developed countries. Chinese civil aviation bureau puts forward a strategy of building a civil aviation power on the national civil aviation work conference in 2010. The civil aviation power strategy can promote China’s air transport industry long-term balance growth and better define the target and direction in adapting to the development of comprehensive transportation. For this call, this paper tries to explore airport management innovation under the framework of platform economy. This paper focusing on the pricing mechanism which contains pricing formula, pricing strategies, influence factors and management enlightenment based on the framework of platform economy. This paper reinterprets the airport management from the angle of platform and uses empirical analysis method to analysis the conclusions. The main conclusions are the following four aspects:(1)The market structure of China’s airport. Our country airport market concentration index of either CR4 or CR8 presents a declining trend. The CR4 dropped from 0.59 to 0.32 and CR8 dropped from 0.72 to 0.48. This decline trend reflects that with the changing of our airport policy the degree of monopoly of airports in China market has been gradually weakened and basically close to the Bain division of low concentrated oligopoly. From the time phase view, China’s airport industry basically in the type of upper middle-class concentrated oligopoly, oligopoly degree is higher, market competition is weak during 1987-1991 years; During 1992-2008 years, China’s airport industry concentration decreased, and lies in the lower middle-class concentrated oligopoly, monopoly degree is low, affected by the impact of policies the degree of competition is further enhanced; China’s airport industry basically in the type of low concentrated oligopoly, the oligopoly degree is low, and the market structure has a trend of becoming competitive during 2009-2011 years.(2)The platform features of airport. If taking the airport as a platform for business, the customer market is not only the two-sided market which contains airlines and passengers, but a three-sided market which adding a retailers due to the need of carrying out the non aviation business. The airport respectively asks airlines, passengers and retailers for registration fees, transaction fees and registration fees; Airlines, passengers and retailer’s homing strategy are respectively malty-homing, partly malty-homing and single-homing.(3)Monopoly airport pricing strategy. In the market structure of monopoly, the airport charges the airlines and passengers fee are based on the price elasticity of demand and network externality, they are negative relationship. The expected number of transactions will affects the airport setting pricing to passengers but to airlines. Ability to match and the cost of service are positive correlate to the pricing which airport set to passengers. The airport will adopts tilt pricing strategy under the assumptions of price elasticity of demand and network externalities of the airlines and passengers are same.(4) Competitive airport pricing strategy. Competitor’s pricing strategy will affect the airport pricing strategy and will lead to a same price change direction trend between them. In particular, the airport charges on airline will be completely synchronized with the competitors. Airport sets price to passengers are influenced by the competitors charging to passengers fee, passengers average unit transportation cost, distance between passengers and airport, passengers and airlines expected trading frequency range limit, the passenger network marginal value, single-homing number of passengers in the airport and the competitors. Airport sets price to retailers are influenced by the competitors’ price, retailers average unit transportation cost, the distance between retailer’s warehouse and airport, the total number of retailers and high or low network marginal value, proportion of low network marginal retailers of the airport detail the specific effect. Specific effects are described in detail in the paper.