Research On Profit Model And Its Effect Of Spring Airlines

With the end of the National Economic Development into the "13th five-year",the construction and operation of high-speed rail to the air transport industry has brought a huge impact,in addition,in 2016 OPEC reached an agreement to cut crude oil prices continue to rise,to the airlines has brought tremendous pressure.Each airline in the pursuit of profit in the process of urgent need to find suitable for their own profit model,to conform to the unprecedented competitive landscape and development dilemma.Since the success of the Southwest Airlines profit model,low-cost airlines profit model began to sweep the world.In 2004,China's first low-cost private airlines,Spring Airlines,was born in Shanghai,marking the country's official low-cost profit model used in the air transport industry.After years of efforts,gradually recognized by the people,and in 2015 IPO,become China's ”first share of Civil Aviation".As of 2018,China has a total of more than a dozen low-cost airlines,but only a continuous profit of Spring Airlines.So,how does Spring Airlines continue to make profits and what is the level of profitability?In this paper,the financial and non-financial performance evaluation of Spring Airlines 'profit model and its effect is started from the constituent elements of Spring Airlines' profit model.Financial performance evaluation based on the analysis of financial indicators and profitability quality two angles,with nearly 5 years of financial data as the basis for the analysis of the effect of its profit model,and with China's four major airlines and private aviation representative Juneyao Airlines horizontal comparison,to explore the impact of profit model on financial performance,while non-financial performance evaluation focuses on its delivery effect,service level,market value and talent structure.Through the analysis of the profit model of spring airline,the paper finally excavates the experience and problems existing in the process of its profit,and puts forward its own suggestions.Spring airline have particularity and represent ativeness in low-cost airlines,and the study of the profit model of spring airline will help to explore the actual operation of this profit model in China's low-cost airlines,which has positive guiding significance for the development of China's aviation industry and even the transportation industry.It is of great reference value to explore the development trend of this profit model in our country,hoping that through the research of this paper,we can play a certain reference for China's air transport and transportation industry in adjusting the profit model to improve the financial performance.