Research On The Regulatory Reform In China's Civil Aviation Transportation

Air transport sector is the basic industry of the national economy sectors. As a natural monopoly characteristics, airline industry has long been the object of government regulation. In particular, China's civil aviation transport industry has been controlled by the goverment since the beginning to be established. The china's airline industry has been conducted a series of regulatory reforms along with the historical changes. Now the china government has already established the management system which is adaptive with the civil aviation industry. However, china's civil aviation industry is facing new challenges and deep-seated conflicts. This paper attempts to Provide useful suggestions for the further reform by exploring the development trend of China's civil aviation industry.The central ideal of this article is about the regulatory reform in china's civil aviation transport industry. This article focuses on the market restructuring under the guidance of the government and price regulatory reform. In the beginning of this paper,the author described the relevant regulation theory and the history of the regulation reform, which have been clarified the development of China's civil aviation transportation history and current situation. For the part of the market restructuring reform, the article indicated that the current monopoly of China's civil aviation market is highly oligopolistic structure by analyzing the degree of market concentration. Contrasting U.S. experience in aviation industry, the restructuring of civil aviation market by the china government is undoubtedly re-adapted to the civil aviation industry development trend.So the government regulation reform should further perfact the civil aviation market structure and gradually reduce the government's intervention directly to the civil aviation market. For the part of the price regulation reform of China's civil aviation industry, the paper First introduced the history about the government's price control, laid the foundation for the analysis below. As China's civil aviation industry has remained under the control of the government for a long time, most of civil aviation market behavior of enterprises have performed for the government's control of behavior, in which the price actio is very typical.Because airline tickets have been priced by the government basically, the price regulatory reform is expand around the government's gradual relaxation of air fares. By analyzing the gains and losses about the price regulatory reform, This paper indicated the direction of further price reform of China's civil aviation industry. The direction of price reform should be to further reduce government intervention on prices, and gradually form a market pricing mechanism. Of course, the civil aviation sector reform is a systematic project, price regulatory reform must be synchronized with the reform of property rights. Because the clarity in theproperty rights is the premise and foundation for the price of market-oriented reforms.In the above analysis, this paper discussed the direction of further reform of china's civil aviation industry. It is establish an fficient, open air market. This paper argued that the Government should further improve the corporate governance structure reform. Second, the Government should lower the barriers to market access, then establish a contestable market. Finally, we should continue to deepen the reform of the regulatory system. Government's management system, management institutions and the laws about regulation should be constantly adjusted in order to adapt and promote the development of the china civil aviation industry...