Cost Management Study For Shandong Airlines

Cost management has a crucial importance for the enterprise, and even about the survival of enterprises. Business managers are often lower than the competitor’s cost advantages, in order to increase the competitiveness of enterprises. Cost Management provides advanced means and methods of the theory of cost management practices.Shandong Airlines since its inception, the pace of development has been rapid in recent years with the development and reform of China’s civil aviation industry is becoming more competitive, how to stand out in a number of airlines and become invincible, Shandong Airlines shouldermission and burden.In this paper, the specification and examples of the combination of research methods, first of all start from the airline’s cost structure and cost classification, the airlines of the cost analysis of influencing factors to identify the various cost drivers; Shandong Airlines of Cost Management existenceprocess, structure analysis, demonstrated the feasibility of innovative ways to control the cost of Shandong Airlines, Shandong Airlines, cost-management tools to optimize the use of innovative methods; on this basis.In this paper, the DuPont analysis system to Shandong Airlines decided an important indicator of the production and operation and effectiveness of interrelated to form a multi-layer structure of the pyramid, easy step by step analysis, comparison, not only can the current production and management, the effectiveness of the situation down to every level to find out the reasons, but also for the year, the chain of two compared to identify deficiencies or advantages. This article also uses the LINGO linear planning tools, Shandong Airlines annual flying hours between each monthly allocation in accordance with the principle of maximizing the contribution margin for re-optimization, used to guide the flight of resources reasonable arrangements and benefits to match. Analysis of each factor the weight of jet fuel consumption, the use of multiple regression analysis used to analyze the various factors that affect the size of the phases of flight affect fuel consumption, ease of fuel-efficient work carried out, saving the airline cost.