Study On The Strategy Of How To Promote Chinese Airline Carriers' Core Competence

In China, the transportation industry is the largest industry and among which the growing speed of the air transportation industry excels all the others'. As a modern transportation means, air transportation, due to its swiftness, safety and comfort, constitutes a major part in the overall transportation system of the modern society. The development of a country's modern air transportation industry reflects the level of the country's political stability, opening-up and economic prosperity. Especially from 1990 to 2004, the growth rate of total air transportation amount in China was over 15% on average, which was almost 4 times of the world's average growth rate. But there are still many problems of Chinese civil aviation transport enterprises, for example the small scale, old business model, low profit ability and so on. So Chinese air transportation industry becomes larger but not stronger. In the meantime, the negative effects from Asia finance crisis in 1998,"9.11"affairses in 2001, large-scale explosion of SARS in 2003, combined with the negative effects from not proper ticket price policy and unbalance of carrying the dint distributes made Chinese airline carriers fall into a crazy price competition, which were frequently referred as suicide. Along with the economy development, Chinese aviation market releases gradually, the market competition also becomes more fierce. So we have to lead into the core competencies theories in the management of airline carriers. By researching of core competencies of airline carriers, we can promote the competition ability of the Chinese airline carriers, in order to exist in fierce competition in future.This paper commences the writer's study from the meaning of core competencies, based on absorbing the result of research for core competencies. Secondly she analyzes compete environment of airline carriers combining with our country state of the nation. After choosing different market fixed positions based on the position that the airlines carrier placed in, the writer puts forward to the core competencies. At last this paper promotes each kind of strategic measure of core competencies in order to give some advises to Chinese airlines carriers about how to improve their own core competencies.