Study On Twin Hub-and-Spoke Scaled Network Of China Southern Airlines

With the globalization and regional integration of the world economy, the aviation transportations have been increasingly developed into globalization, alliance and large-scale network. Whereas, China Southern Airline(CSA),being one of the third largest aviation transportation companies, has been revealed as small-scaled industry, low market share, simple point-point flight routes, uncompetitive of international competitiveness, which is extremely depressed. Therefore, it is very important to analyze scientifically the competition situation of CSA and propose the measure to enhance the competitive advantage for CSA, ensure to promote the sustainable development of CSA and strengthen the aviation transportation industry of China.This paper starts to analyze the intense competition for CSA both from domestic and abroad based on the factors of the market share, the situation of the network bases, the quality of the flight route and network; it also probes into the root reason that resulted in the CSA lost the competitiveness gradually; furthermore it expounds the necessity and urgency on the transformation to scale-network for CSA. This paper concentrates its expositions on the transformation of strategy for CSA after the brief analyses on the aviation development domestically and abroad. This paper analyzes that the point-point flight route result in the waste of the resources and malignant competition due to the repetition flights. It also discusses the necessity and feasibility for CSA to re- construct twin Hub-and-spoke scaled network against the fatal disadvantage of point-point flight route structure. Moreover, this paper expounds the advantage of hub-and-spoke scaled network that it can enhance the special effect of distribution of the flight resources, and benefits to explore the potential market demand.In review of the above analyses, this paper proposes strategically the structure and implemental plan of the hub-and-spoke scaled network for CSA, and it also put forward to certain strategic suggestion, such as to add central network hub and establish the"Families of Feeder Airlines".