| The WTO ministry meeting held in Doha on December 2001 formally confirmed the status of China as a member of WTO. Chinese enterprises get more space to develop and as well as face more and more challenges from the big MNCs. As the fast development of the economy and technology, the 21th enterprises facing the new non-consistency competition environment, including the unstopped tendency of world economy globalization, the speedy developed innovation of technology, and the highly changed desire of the otherness client etc. those set a new standard for the management and operation of the Chinese enterprises. Every industries of china took specific measures to keep the step of the whole world. For instance, we all saw the tides of annexation and combination of the several big Chinese civil aviation groups and the legend of the innovative operation of Hainan Airlines ' captial in large scale these are no doubtfully the act of civil aviation of china for the WTO.For civil aviation of China, the "911 terrorist attack"on the USA impacted the overseas great airline groups. It reduced the pressure on Chinese enterprises macroscopically, and provided more preferential fees in aircraft purchasing and leasing which cut the cost microcosmically. But this chance is only short-lived and temporary. Basically speaking, civil aviation enterprises can quickly change the existing status of the small scale, high cost, low management only by grasping the chance. Chinese civil aviation enterprises must engage with the international civil aviation and that is the only way we can gain the opportunity and space on exist and development. There is no other way.Wuhan Airlines is a state-owned civil aviation enterprise belongs to the Wuhan local government. Since its founding in 1986, after 15 years development, WAL boast six Boeing 737-300 aircrafts, two Boeing 737-800 airplanes, six Yun-7 aircrafts and operate in over 40 domestic lines. WAL is one of the important enterprises of Wuhan city with total assets more than 1 billion RMB. For historic reason, the staffs especially the mangers were from the army. As the rapid expansion of the company after 1994, just like almost state-owned enterprises, WAL didn't manage the operation of the company very well through the process of the expansion. The former management system and the prosecution level of the management can't match the development of the company. This is a fact that every body can see. And that's why the WAL's benefit declined contiously during the last four years. And so came an aircrashin 2000. According to the instruction of CAAC and under the press of the government, WAL moved its' base from Hankou Wangjiadun airport to Wuhan Tianhe international airport on January 1th, 2001. This put WAL into the cruel completion area. This act lead directly the highly increase operational cost and sharply reduced flight ticket income, estimated a total loss of 80 million RMB per year. Except this, the loss of client stem from the loss of the advantage of the geography is evident. So the living crisis of WAL edged out since the base movement.According to the demand of living and development, the manager of WAL become aware that through process strategy reorganization is the only way for WAL. They contacted with several bigger airlines of CAAC in 2001 respectively, and become three kinds is most possible of project. In this condition, I have maked in-depth inquisition to the company's property condition and operate condition, and try to find a solution to solve the exist problem of WAL. Through analysis the present condition of CAAC and compete condition analysis behind join WTO, join together the aspect's experience of many domestic and international business enterprise reform, I have proceeded feasibility analyzed deeply to three projects. Through compare the advantage and inferior positions of different projects, I have confirmed the advantaged project in the mass, then set up the management mode for the reorganize company and forecast profit ability in the future at the same ti...
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