China's Private Aviation Market Positioning Study

Owing to the deeply reforms of Chinese civil aviation and the hugeappealing aviation market, many private airlines have been established. However, these private airlines encounter an essential problem, theyhave to choose between two market models: the traditional network airlinesmodel or the low cost Airlines model. The following parts shows that theprivate airlines should follow the low cost Airlines model.Firstly, by analyzing the political, economic and civil aviation industryconditions, it can be seen that the rapidly developing economy, the strongsupport of the government and the enormous market make it possible for theprivate airlines to survive and develop.Secondly, the private airlines are facing many challenges on their wayto develop. Many uncertainties will arise before the private airlines. On onehand, the policies are still a big barrier to the private airlines, on the otherhand, the private airlines must find ways to get rid of many troubles such astalents problem, no freedom of buying airplanes and the limitation of scale.Finally, by studying the rise and fall of the foreign low cost airlines, theprivate airlines can learn a lot from them.The last part of the paper involves some measures China privateairlines may take. All in all, the low-cost development model is the bestchoice to China private airlines.