Establishment Of China's Civil Aviation Tariff System To Adapt To The Market Mechanism

In the recent decade, civil aviation of China has developed rapidly, but at the same time, it also faced the difficulties in its development. By the end of 1998, the record of 15 year' profit of civil aviation of China had come to an end. The total loss amount is 4.3 billion which shocks all Chinese people and which is relevant to the exiting management of civil aviation fares system of China. Over 20 years, every fares change of civil aviation is totally decided by Civil Aviation Administration of China, but not adjusted by the market. The reform of civil aviation's fares system is not rational, scientific and active. Therefore, it is a focus weather the reform of civil aviation is a success or a failure.How to establish a fares system of civil aviation of China which fits in with market mechanism is the key to break monolopy and to win competitive power. The reform of civil aviation is not simply a price reform, and it concerns the other reforms of the whole industry of China's civil aviation. It is not only the first step, but also a key step of the civil aviation reform of China. If it will succeed, that means that enterprises of civil aviation of China possess the basis of market competition, promote the process of marketability, industlization, globalization, have the strength to take part in the international competition and the ability to meet the challege of international civil aviation. This is the very background and reason on which the studies and discussions of the thesis are based.The thesis consists of three parts. The first part analyzes malprictice of the exiting fares system and the reason. It points out that administrative monopoly is the major of obstruction which limits the effect of market mechanism. And administrative monopoly results in the separation between fares system and market economy. The second part focuses on how to establish a fares system of China's civil aviation which fits in with market mechanism. The thesis discusses the essential way, the final goal, the price decided basis of fares reform of civil aviation and the concerned restriction and inspriation mechanism. In a word, the reform of fares system of civil aviation is to set up a multi-fares system based on the effective competition. The last part analyzes the features and advantages of multi-fares system. Thesis put forward that the new fares system provides the supply and demand information between airlines and passengers by means of the price lever according to market mechanism. The new system is not only a change of fares, but also a signal of reform of civil aviation and other monopoly industry in China.