An Empirical Analysis On The Deregulation Performance Of Chinese Civil Aviation Service Industry

Deregulation reform of Chinese civil aviation industry in2002and2005is a landmark significance of the development of this industry. The former leads the restructuring of civil aviation reform, markets the beginning of China’s civil aviation industry separating. The latter has a profound impact on the market opening of the civil aviation industry. The research on the performance of these two phases is not only a deregulation policy objective evaluation of the civil aviation industry but also provides theoretical and empirical basis for the further reform and development. This paper, based on the theory of industrial organization, uses DEA performance evaluation of civil aviation services industry, and bases on the data of2001-2011aviation of Chinese and Southeast Asia, uses double difference method and econometric model, to empirically research the relationship between regulation and industry performance.The conclusions of empirical analysis are:(1)The impact on the industry performance of changes in industrial restructuring is not significant, but the long-term impact on the industry is negatively correlated, indicating that since the government in2002led directly corporate restructuring on industrial performance improvement effect is very limited.(2) Market opening of industrial performance has shown a significant impact on the enthusiasm on the short and long term.(3) Aviation competition between enterprises reflects in the expanding scope of the market, namely the competition instead of the incremental stock competition. Having more production capacity and the right to operate more lines become major factors in this market, the scale of competition instead of price competition in the market competition has become a major tool for aviation. The empirical results reflect the characteristics of expanding scope of expansion and market-led development stage of China’s civil aviation industry, logic and pattern of deregulation of the general aviation industry and market-oriented path of gradual reform. This paper suggests that further deregulation of lifting price and the line operation, market openness of fuel oil and low air space, enhances airport regulation, regulation system reconstruction of airlines and air space would be the future trend of the deepened reform in aviation industry.