Spring Airlines Competitive Strategy Analysis

In the 1970 s,American Southwestern Airlines,the first low-cost airline,attempted low-cost strategy for the first time in the airline business.They exercised strict cost control during operation stage to develop their business and won decisive victory in American airline market.Soon low-cost airlines have spread all over the world and swept the airline markets in America,Europe and Oceania in 2012 and became the most fast-growing sector in airline business.Low-cost airlines start relatively late in China,but as an outstanding airline in this field,Spring Airlines constantly improve itself while learning from Southwestern Airlines,led to its success.As the very first low-cost airline in China,Spring Airlines was found on July 18 2005,showing our people the low-cost business model for the first time.However,Spring Airlines was not looked upon favorably at first,but with substantial supports from governments at all levels and civil aviation authorities,as well as its own efforts to constantly explore the low-cost airlines business model that suits actual situations in China,Spring Airlines has cultivated its low-cost competitiveness,overcome mountains of difficulties and obtained steady development during the past decade.The rising of domestic civil aviation industry and expansion of its market nowadays have pushed more corporations jumping into the low-cost airlines market.Faced with increasing amount of hurdles,Spring Airlines must continually make progresses while conducting self-improvement to maintain its position as leader of the domestic low-cost airlines.This paper,based on the competitive strategy of Michael Porter,conducts an in-depth study of the current situation,internal and external competitive environment,competitive strategy and specific implementation of Spring Airlines according to China`s latest situations and policies as well as sets of data of airline business and Spring Airlines recent years,thereby concludes the specific operating strategy and decisive advantages that lead Spring Airlines to success in the particular industry environment in China,and proposes detailed coping measures regarding its shortages to obtain better development.Meanwhile,research and analysis in this paper provide certain significance to all major traditional airlines and corporations that intend to transform to low-cost airlines.