Research On Regional Aviation Strategy Of Air China Southwest Company

After the reorganization of three large aviation groups, China's civil aviation has entered into a new era. Each company is dedicating itself to the research of competitive environment of the market and methods of improving the core competence. In order to attain more market share, the establishing of Hub-And-Spoke System is the necessary choice. Up to now, the trunk route network has been almost completed. For the development of China's civil aviation and the operation of aviation enterprises, the growth of regional aviation owns great significances for the establishment of the hub network, as well as activating aviation market and development of the whole business.The merging of Air China and China Southwest Airlines (Air China Southwest Company) is not only the recombination of capital but also the reallocation of the aviation resources. Developing regional aviation, especially to use the advantage of Southwest Company to exploit the market in west part of China, is strategically very important for the new Air China Group to better the network and flight design. As a result, the research on the operation strategy of Air China Southwest Company obtains very important realistic significances. It also provides new ideas for the system reform of aviation industries.The thesis adopts both methods of demonstrative analysis and theoretical research. On basis of investigating the actual status of China regional aviation,and intergrades with over ten years' working experience, the writer elaborates the strategy selection and implement for Air China Southwest Company's operation.The paper is divided into four parts. The first part introduces the history and the actual status of regional aviation. It also analyzes the existed problems. The second part makes a brief introduction on the history and actual status of Air China Southwest Company. Using the analyzing tools of strategic management, the writer elaborates the outer macro environment (EEF matrix analysis) and inside capability (IEF matrix analysis), compares five competitive forces in the aviation industry (Peter's Model), and at last attains the solution for implementing the regional aviation strategy. On the basis of the analysis in the second part and combined with the general strategy of Air China Group, the third part selects the target and operation strategy of regional aviation for the company. According to the competition theory of Micha.E.Porter, the writer chooses the combined low cost and differentiation strategy as the basic competitive strategy of the company. The fourth part is to exploit how to implement the low cost and differentiation strategy in regional aviation. At last is the summary of the whole article.The thesis is to research the operation strategy from business operation point of view, and it tries to utilize business administration theories in detailed operation process. So the paper acquires guided significance for the development of civil aviation enterprises. Both detailed strategy plan and the overall framework of competition strategy and function strategy proposed by the thesis will have strong realistic significance and maneuverability.