Analysis Of The Motives And Patterns Of The Restructuring Of China's Civil Aviation Sector

The thesis analyzes the problems hindering the development of China's civil aviation sector to illustrate the necessity and urgency for a system restructuring. Analysis has been made on the backgrounds and motives stimulating industry restructuring both at home and abroad. Through comparison of China and other countries in the field of civil aviation, similarities and differences have been found and valuable practices of other countries have been observed. As the civil aviation sector is concerned, no matter in China or other countries, monopoly should be avoided when the industry undergoes restructuring and expands to a certain extent.The thesis features the application of the Industry Organization theory and the "Workable Competition" theory to the research of civil aviation sector restructuring. The key issue for the Industry Organization theory is how to make full use of scale economy when protecting the competitiveness of companies.The thesis focuses on the patterns of restructuring China's civil aviation sector. Before the year 2002, there were so many airline companies that it was hard to achieve a balanced resource allocation and high efficiency. Airline companies of the time were mostly SOE and the common pattern of restructuring was merger and acquisition. From 2002 to 2006, the capital market of China had becoming increasingly mature and large airline companies had been full-fledged. Thus the commonly accepted means for sector restructuring became efficient capital operation. Nowadays, with the globalization of the industry, new challenges arise: How to prepare ourselves for the international competition and cooperation? How to gain a better position on the market? Merger and acquisition, cross share-holding and airline alliance are the three patterns respectively for the above mentioned three phases. The thesis lists the goals and characteristics of the three patterns and presents detailed analysis through case studies.The last part of the thesis further illustrate the fact that China's airline companies should undertake strategic restructuring and industry framework adjustment, based on requirements of the market and a scientific development strategy. Meanwhile, valuable practices in other countries should be taken into consideration to develop our civil aviation sector under the condition of workable competition. Advice is provided concerning government policies and the eternal and internal environments of airline companies.