The Competency Model For Airline Carriers

In China, the transportation industry is the largest industry and among which the growing speed of the air transportation industry excels all the others'. From 1980 to 1994,the growth rate of total air transportation amount in China was 21% on average ,which was almost 4.3 time of the world's average growth rate. And China was rank 4th , by the revenue gained from passenger transportation in China main land. But high growth rate never means high profit rate. In 1998,the excess of transportation ability, combined with the negative effects from Asia finance crisis, made Chinese airlines fall into a crazy price competition, which were frequently referred as suicide.As time goes by, the air transportation market in China will be more and more open, and the competition will be crueler and crueler. So it's high time to study the competency of Chinese airline carriers.The writer commenced his study from the meaning of competency. Making a fully understanding of what's competency, he analysed the factors which can affect the competency of Chinese airlines significantly under the current market condition of air transportation in China, and then put forward a competency model consisted by service, efficiency, human resource, financial risks and scale as well as the variable system for this competency model.After that, the writer collected 5 list companies' data in 2003 and 2004 and use the data to weight the variables in the model with the principle components method. The model was set up, and it was used by the writer to compute the competency scores of the 5 list airline carriers immediately. Then the writer interpreted the scores of the 5 airlines in detail. Both the strongpoint and the weakness of every airlines were given, of course, together with the recommendation on how to improve competency.In the end, the writer summarized the flaws of the model, such as could not measure the yield management ability, many variable of the original model was deleted for the data were unreachable, could not be used to compare the competency between Chinese and foreign airlines, could not reflect the competency level ofregional airlines in China.