The Research On Performance Of China's Airline Industry Regulation Reform

China's airline industry regulation reform began in the 1980s, through the adjusting process from strict regulationâ†'easing regulationâ†'strict regulationâ†'easing regulation, China's airline industry has developed a lot. China's airline industry is not only the traditional natural monopoly industry, but also in the special background of China's economic system transformation. From both technical level and institutional level, the industry has its own unique and complex characteristics which are different from that of other countries. How is the performance of China's airline industry regulatory reform? How to adjust the future direction of regulatory reform? In this paper, we use the regulation theory and industry economics as the theoretical foundation; analyze China's airline industry by using ISCP paradigm in industrial organization theory, and systematically generalize the industrial institution, industrial structure, conduct and performance, and the mutual effect between them. Through the analysis of the industrial characteristics and industrial organization, combined with the practice of regulation reform and the use of both theoretical and empirical analysis methods, we wish to explore and evaluate China's airline industry regulatory reform. In this paper, we used the 20 years time series statistics data of China's airline industry from the year of 1990 to 2009, set the measurement models respectively from the total, cost, price and service quality four aspects, to test the performance of China's airline industry regulatory reform. In the end, through comparing and learning the experience from the U.S. and Japan airline industry regulation reform, we made relevant policy recommendations to the development direction of China's airline industry regulation reform.