Research On The Benefit Decision Of Airline In Oligopoly Market

In order to adjust the industrial structure, promote the coordinated development, and release the market vigor of China’s airlines industry, the civil aviation administration of China has been doing the reform of three administration policies:lift restrictions of starting new airlines; reduce the license approval of opening new flight course; give airlines much more rights in pricing.The above reforming policies make the airlines market increasingly competitive. To achieve good economic benefit in the bad market conditions, the airlines have to strengthen their revenue management ability.Because of the different market features, the revenue management system introduced from abroad cannot be useful for the airlines. Based on the oligopoly market of China’s airlines industry, this paper builds a new revenue management method, which lists the market forecasting and competition analysis as the main workflow. To forecast the passenger volume, this paper builds an Autoregressive Integrated Moving Average model according to the seasonal and periodic characteristics of airlines market. And this paper builds game models to discuss how to make the price and seats allocation decision under the hypothesis of double oligarchies market.