West Airlines Low-cost Operation Mode Of Strategy Management Research

Along with the development of domestic economy, the competition of theindustry grows more and more fierce, especially the aviation industry. Manyairlines, in order to consolidate the status of its industry, purchase and leaseaircrafts, and increase the investment in infrastructure constructions, which causessignificant problems of high costs and excess capacity.On the quest of seeking for an effective method of cost control, the managersof airlines, step by step, explore a set of low-cost operating strategy. The reason ofmany low-cost airlines could so rapidly rise and development is due to variousreasons-the economic situation and the change of the social concept. Those are themost important powers, causes the innovation of air travel, transformed from luxurytype to the economical and public-priority-given type. There are two advantages oflow-cost airlines: high density and high utilization efficiency plane seat. In addition,the maintenance cost is also important factor. The cost reduction mainly rely on twomethods: by improving the aircraft utilization (high-density seat and flight time) toreduce the unit cost; or by reducing maintenance costs (single models and low ratioof man-machine) to control the overall operating costs.West Airlines co., LTD is a subsidiary of the HNA Group. Six years sincefounded, with the rapid development of China civil aviation, West Airlines co.,LTD grows its number of possessed planes, enhances its comprehensive strength,and increases the total count of passenger transport year by year. But in thedemanding of high-speed growth of civil aviation market, the operating incomegrowth of West Airlines co., LTD still has the space to be improved. But, somedifficult problems in operation and management should be solved first.With the deepening reform of China’s civil aviation system and the propositionof "12th five-year plan" of civil aviation, West Airlines co., LTD and some otherdomestic airlines are experiencing the pain of concept transformation and thepressure of unprecedented management. The key of becoming a regional aviationleader is to build a suitable low-cost operation strategy for its own characteristics,and to formulate a core power of this.In this paper, based on the strategic environment analysis of the current civilaviation market, emphasized on low-cost operating, some exploration and thinkingabout the reform and development of western HNA aviation co., LTD will beoffered.