Air China Development Situation And Strategy Research

Since China’s reform and opening up to the outside world in1979, the Chinese civil aviation industry has experienced rapid growth, and has become a significant part of the Chinese economy. It plays a fundamental and leading role in the Chinese economy. It helps promote the economic and social development, and becomes the strategic and innovative industry. In2012, the Chinese civil aviation industry transportation turnover totaled61.032billion tons km, with the combination of passenger turnover of44.643billion tons km and cargo turnover of16.389billion tons km. Since2005, China civil aviation transport turnover has ranked the second place in the world.Air China Limited (Air China for short) is the only civilian airplane company which is allowed to fly with the national flag. As a member of the Star Alliance, Air China was evaluated by the World Brand Laboratory in2013with a total value about76.568billion yuan, and its brand towered over other domestic civil aviation brands. It is responsible for the nation’s leaders’special plane service and foreign leaders’service. It is the leading one in domestic market, promoting the development of China’s civil aviation industry.Although Air China Limited has enjoyed the rapid development, it is faced with great challenges and threats. In addition to Air China, there are China Eastern, China Southern Airlines and Hainan Airlines Group, the fourth-largest group. The foreign major international airlines also cast greedy eyes on the Chinese market, making the competition more fierce. In this regard, the author uses a combination of quantitative and qualitative methods to analyze and discuss the strategic development of Air China in order to promote the development of the company, and the author also hopes to promote the healthy and sustainable development of China’s civil aviation industry.This paper consists of six chapters. The first chapter introduces the research background, object and methods, purpose and significance, research status, and the related theories. The second chapter analyzes the external environment of Air China Limited. The third chapter analyzes the internal resources and capabilities of Air China Limited. The fourth chapter analyzes Air China Limited through SWOT analysis method, including the strengths and weaknesses, opportunities and challenges and meanwhile makes a strategic match. The fifth chapter analyzes the vision, strategic objectives and strategic choices of the company. The sixth chapter formulates the company’s strategic development way on the basis of the previous research and analysis.According to the research and analysis, in order to survive and develop in an increasingly competitive environment, Air China Limited must continue to implement safety supervision, strengthen the industrial layout, perfect layout of the market, establish management and control mode, optimize resource allocation, and enhance human resource levels and international competitiveness so as to achieve the sustainable development. Air China is faced with both opportunities and challenges. It is of great significance to analyze the current development of Air China and put forward the future development strategies, which can help to improve the competitiveness of Air China by seizing opportunities and meeting challenges.