Research On The Performance Assessment Of D Airline Company Based On EVA And BSC

A scientific and effective performance appraisal system can help the enterprises toquickly improve their overall value and performance, so as to gain more advantages inthe market competition. In2010, the SASAC (State-owned Assets Supervision andAdministration Commission) conduct EVA(economic value added) among the centralenterprises, which marks the state has no longer focused on the profitable growth, thevalue creativity of the enterprises is the main factor for the country to consider aboutthe enterprises. The essay discusses about the Aviation Enterprise which has high risks,even though the aviation enterprises show the rapid growth in the aspect of profit, butthe aviation enterprises have indicated continual losses for many years in the aspect ofEVA. This implies that the value creation ability of the aviation companies in Chinahave yet to be improved. To implement the evaluation of EVA can guide the aviationcompanies in enhancing the value of creativity and promote the sustainabledevelopment of the aviation enterprises. However, in the process of implementation,some problems are still considered by the aviation companies. Aiming with theproblems, the Chinese aviation companies should build up a value orientedperformance appraisal system in the framework of Balanced Scored Card, whichcentres on EVA, to ensure the effective implementation of economic value addedassessment in the aviation companeis.In this essay, the D airline is taken into account as a case to analyze the existingproblems of the performance appraisal system. Due to particularity of aviationenterprises, which are faced with the high rate of assets over liabilities, rising fuelprices and other uncertain factors, the enterprises’ performance appraisal is morecomplex. And therefore, the simple financial index with the core of EVA cannot becomprehensive to evaluate the performance of the enterprises. This paper summarizesthe researches about EVA and BSC (Balanced Score card) of domestic and foreignscholars. From the basis of previous views, this paper considers the BSC, wedecompose the strategy of D airline into five aspects including financial, customer,internal process, security, learning and growth,use EVA and related indicators tosupplement and improve the financial aspects of the Balanced Scorecard, in order tojointly build a performance appraisal system in the framework of Balanced Scored Card which centres on EVA and to decompose EVA and related value-orientedindexes into various departments of D airline, thus make the management andemployees pay more attention to the value of the enterprise.