Mergers And Acquisitions Performance Study On China Airlines

Passenger and freight transportation is the mainly business of airlines, which playsa significant role in the regional economy and the national economy. Since1980s, thedeveloped countries had gradually relaxed the power to regulate air transportation,therefore the airline mergers and acquisitions increased. Mergers and acquisitions as aneffective means of market restructuring and redistribution of market resources has beenintroduced into China’s air transportation market. However, the introduction of mergersand acquisitions is not long, therefore domestic theoretical and empirical study on the M&A performance of airlines is little. Thus studying the M&A performance of airlinesfor promoting the development of China’s air transportation has a certain meaning.The main theoretical starting point of this paper is that the companies want tomaximize profits, so I think the primary purpose of the mergers and acquisition is tochase profits. Thus, the object of this paper is the dominant airline of the mergers andacquisitions. I will study the impacts of the dominant airline of the mergers andacquisitions.Firstly, in this paper I concluded relative theoretical studies and performancestudies of airline mergers and acquisitions, later I summarized the sources of the M&Aperformance of the airlines. Secondly, I analyzed the main features of airline mergersand acquisitions. Thirdly, I established the index system to evaluate the M&Aperformance of airlines on the basis of the above two theories. I analyzed the case thatthe mergers and acquisitions of China Eastern Airlines and Shanghai Airlines using astatistical comparison and multiple regression method. Finally, I summarized theconclusions of the study, and proposed correlative measures.