The Impact Of Deregulation On China's Airport Industry

Major adjustment on industry policy makes strong impact on the industry.It changes the market structure,which decides the enterprise conduct,and further influences the economic performance of the enterprise.This is the structure-conduct-performance analysis framework produced by the industry organization theory.Since 2002,according to the Civil Aviation System Reform Program approved by the State Council,a series of reform policies have been put forward in Chinese airport industry,including the transferring of Chinese airports to the local government, the expanding of the opening-up policy,and the deregulation of market access.This is the most thoroughgoing separation of enterprise from the government in Chinese airport history.With the implementation of these polices,Chinese airport industry enters the period of deregulation.The adjustment on industry policy makes strong impact on the industry,with great changes happen to the industry's structure, enterprise conduct and the performance of the industry.This thesis uses the SCP analysis framework to analyze the influence of adjustment on airport policies on the market structure,enterprise conduct and performance of the industry.By applying the structure,conduct and performance (SCP) approach to Chinese airport industry,this thesis finds that deregulation introduces competition to the industry,releases its energy,promotes its development and puts an end to its long-term deficit.Deregulation promotes the profitability of the enterprises,and improves the industry's public welfare at the same time.Therefore, deregulation has made great positive effect on both the industry and the whole society. After that,the industry policy forecast and the industry outlook are made.Finally,this thesis puts forward some suggestions to the Chinese airport enterprises.