Study On Chinese Civil Aviation Industry Organization

Since 1980, reformation has been the theme of the development of Chinese civil aviation industry. For more than 20 years, under the interaction of various interest groups and the contradiction of the administration power and the market power, Chinese civil aviation industry has come through many important events, such as air transportation price reform, big loss of the whole trade, the prohibition of discount, setting up three major aviation groups and so on. Though the civil aviation industry of China has changed completely, the reformation has still dropped behind the development of the whole society. How to appraise the reform accurately? What kind of reform will be the most efficient in the future? I think the method of the modern industry organization theory will play a very important role in our study.Part one of this dissertation introduces the main train of thought, the SCP model, which is the basic analyses frame of the industry organization theory at first. The model includes three basic factors: Market Structure, Market Conduct and Market Performance. The basic frame of reference of the theory is market structure determines enterprise's behavior and then through enterprise's behavior determines market performance of the whole industry. Subsequent scholars amend this SCP model by adding the reaction of three factors. Secondly, I introduce the current situation of Chinese civil aviation industry from enterprises, system reform and main problems.Part two of this dissertation analyses market structure of Chinese civil aviation industry according to the SCP model. Firstly, 1 judge the industry belongs to oligarch monopoly market by accounting the "CRn". Secondly, I answer the question why big enterprises in this industry cannot obtain monopoly profit by analyzing Chinese administration monopoly. At last, I come to a result that Chinese civil aviation industry is a administration dominant, oligarch monopoly, low differentiations, highadvance and retreat bulwark market structure.The third part of this dissertation analyses market conduct of Chinese civil aviation industry according to the SCP model. In section one, I analyses enterprises' different price conducts in different periods and different policy environments. Then I discuss the sticking point of how to bring the new price reform scheme of 2004 into practice and the influence in the future. In section two, I analyses the big recomposition in 2002. Through setting up game model, I find the reform cannot come to a good result by any possibility, due to the leader of this reform.The last part of this dissertation analyses market performance of Chinese civil aviation industry according to the SCP model and then propose several feasible suggestions on Chinese civil aviation industrial policy. I analyses the market performance of Chinese civil aviation industry from the aspect of resource distribution efficiency according to the conclusion of two upper parts, and then put forward the ways to solve the existent main problems such as the distemperedness of market mechanism, the insufficient of availability market demand, the high debt rate and low profit of all the enterprises, etc. From my point of view, the ways are: firstly, accelerating the construction of legal system, stepping up making the antimonopoly law and revising the law of civil aviation; secondly, establishing real market subjects by the reform of state-owned property right system; thirdly, setting up omni-directional advance and retreat mechanism; at last, breaking up the administration monopoly in the previous industry, in order to improve the competitiveness of all the enterprises in Chinese civil aviation industry.