China's Civil Aviation Transportation Price Control Study

Since China started its reform and opened to the world, its civil aviation has gone through a process from severe control to deregulation by the government. On 2004 the new civil aviation regulation system has been set up. How to regulate the civil aviation market in the new environment has been the focus of the theoretic and practical parts. This paper selects the most important part of the economic regulation of civil aviation- price regulation as the motif. The author will analyze the economic reasons for price regulation of civil aviation industry, summarize the foreign experience and skills, examine the current situation, and put forward the suggestions for perfecting the civil aviation regulation in China.The logic of this paper is that the author will first analyze the general theoretic framework for the civil aviation price regulation, then summarize the foreign experience, and finally put forward the suggestions. The article consists of five parts as follows:Part one is the introduction, mainly about the motif and significance, summary of the related literatures, the logic and method of this paper, the main definition and the framework of this paper.Part two is the theoretic analysis, mainly about general analysis of civil aviation regulation. This part will start from the reason of price regulation of the natural monopoly, and then will analyze the industry character of civil aviation and the regulation method.Part three is the foreign experience, mainly about the price regulation experience of civil aviation industry in the United States, Canada, Brazil, German and Japan.Part four is the empirical analysis. This part will discuss the change of the regulation system and the price policy, evaluate the current price policy and point out the problems.Part five is the suggestion analysis, mainly from the perspective of reforming the scheme of current price policy, relaxing the entry regulation, carrying out the benefit management and reforming the airline companies.The innovation of this paper is about the systematic analysis of price regulation of the civil aviation industry in China, especially that the author analyzes the change of price regulation system in China for the first time, and puts forward the suggestions of perfecting it.