Motivation Analysis Of M&A In Civil Aviation Industry Implication From Battle For China Eastern Between Singapore Airlines And Air China

Since late 19th century, there have been five times larger wave of corporate mergers and acquisitions (M&A). In the fifth wave, the civil aviation industry tries to get the competition advantages by M&A to expand scale and enhance the overall strength. This study is based on a special case, which is soul-stirring battle among China Eastern, Singapore Airlines and Air China. The objective is to analyze and to document the motivation and factors affecting the M&A in China's civil aviation.This study includes five chapters. Chapter 1 is the introduction of this study, including the meaning, the brief methods and the framework. Chapter 2 presents a review of existing studies on M&A. Chapter 3 describes the special case, the battle for China Eastern between Singapore Airlines and Air China. Chapter 4 analyzes the case and explains the underlying reasons. Chapter 5 gives more analysis on the M&A in China's civil aviation.Through analysis, the conclusions are as follows. The motivations for M&A in civil aviation industry are the pressure of competition, the access to strategic resources, and they want to achieve synergies and solve financial difficulties. M&A may push by the Government. In the process of mergers and acquisitions, some factors, such as, legal supervision, fair valuation and the effective competition play very important role. This innovation of this study is that it documents the motivation for the M&A in China's civil aviation industry based on special case. The study on effective policy recommendations will be further research directions.