Research On Operating Strategy Of Low Cost Airlines

With the advent of aviation deregulation in 1970s, the first low cost airlines emerged in US. In 1990s, low cost airlines are booming in the worldwide. With the benefit of the development of the Chinese economy, the demand of economical aviation traffic is fully released. Low cost airlines are opening up when China is balanced developing the civil aviation industry. This thesis concentrates on researching the operating strategy of the low cost air carriers in China based on strategic management theories, the industrial organization theory in particular.The paper explores the political, economic, social and technological environment based on PEST analysis. By using Porter's five forces mode, it following studies the aviation industrial environment. After analyzing the opportunity, threat, strength and weakness faced by the low cost airlines with SWOT model, the paper makes out the optional strategies such as overall cost leadership, differentiation, strategic alliance, which are suitable for low cost airlines. At last the paper explores the strategies implementation by Spring Airlines.