Research On The Influence Of China’s Major Airlines M&A On Long-term Performance

At the beginning of 2020,COVID-19 became biggest black swan event of the year.Until end of August,23 airlines worldwide have gone bankrupt,and the aviation industry has ushered in a new wave of bankruptcy.This article takes top four Airlines of China as research object,selects major M&A from 2001 to 2019,and combines the characteristics of M&A.Take different M&A classifications as entry point,and calculate M&A performance score of each airline by constructing a comprehensive index evaluation model.On this basis,the M&A performance is then set as the dependent variable,the impact of various factors on M&A long-term performance is analyzed through multiple regression.The performance score shows that in the early stage of civil aviation system reform,horizontal M&A led by the central government or supported by local governments can bring about improvements in airline performance.Are affected by national policies.With the market-oriented development of the civil aviation industry and market-oriented,horizontal M&A based on intercontinental networks can also achieve synergies.However,frequent mixed M&A with diversified operations as the strategic goal,especially overseas M&A that rely entirely on high leverage and unrestrained overseas M&A,will result in a substantial decrease in performance.The test results of the influencing factors on M&A performance prove that: at the macro level,national policy restrictions have a negative correlation with M&A performance;international oil prices have little impact;the central bank’s benchmark interest rate has obvious effects.At the M&A level,M&A geographic distance is negatively correlated with M&A performance;business overlap is positively correlated.At the corporate level,there is a significant positive correlation between corporate size and the nature of ultimate property rights on M&A performance.