Chinese Airlines Internal Control System Improverment Research

With the global economy high-speed development, the market opening up gradually, and the competition of enterprises is gradually intense, the listed companies will face high risk during their high-speed development. A research from the international internal control research committee shows that the scarcity of internal control is the important reason which causes an enterprise management failure, taking a risk to deceive their investors and social publics. Enhancing the enterprise internal control has been an effective way for the listed companies to evade risk and ensure its profit realization. The internal control theory has been developed for a long time, and now this theory has already been tended in maturity in international society. The internal control theory raised by the COSO committee has become a standard of internal control for all countries drawing lessons. Many international well-known enterprises, such as Motorola, American southwest airline, American continent airline etc, have already combined the internal control with their company's target, and making use of it in productive detail. The definite target of internal control ensures all the productive links been under control all the time. The cost control is the core of internal control, which ensures a company existing and developing during the competition. Internal control is detailed into each links of manufacturing, which leads to reduce the company's cost and carry out their high profits.The study on Internal control theory is later in China than in abroad. Some organizations such as China Securities Regulatory Commission have emphasized extending to use the internal control in companies gradually. But internal control in company has not become a system. And a lot of enterprises only write the internal control into their internal regulations, but don't carry it into practice. Though there are many successful cases on internal control in china, the much more is a lot of well-known enterprises defeated in their extraordinary weak internal control, such as China Aviation Oil Singapore company which was insolvency of a debt, the Petrol China which is on the compensated for petroleum pollution, and Axiya which was bankruptcy. Summarizing the experience of these companies, we can see that their internal control had not become a system and they didn't carry out a valid control, which were the important reason for these enterprises not achieving their targets.The aviation industry in China is a high risk and high cost industry. It is facing latent risk of safety and operation, weak on inner management, financial crisis and intense competition of aviation market. These years, the aviation market high-speed developing has brought vast development space to airlines. But the high cost and the fast growth of profits and income don't be in a positive proportion. The airlines met a bottleneck on development. Through analyzing the successful cases of the oversea airlines, we clearly known that internal control is very important to operate an enterprise. In the control system of airlines, financial management must be the core in the internal control. The internal control must be embodied in each area of the operation to carry out whole members, whole processes and all-directions controls.This study analyzed the thoughts and ways on improving the internal control system of Chinese airlines. The purpose is to help the enterprises evade risk, reduce cost rational, protect the property safety and integrity, promote all the management executed effectively, carry out their profit target and make harmonious development of the enterprise.