Research On The Implementation Path And Effect Of The Cost Leading Strategy Of Spring Airlines

In 2020,with the spread of co VID-19 around the world and the widespread suspension of flights,airlines still have to bear high fixed costs such as aircraft parking fees and leasing fees while their revenues are sharply reduced,which will put the airlines,which already have low profits,to a more severe test.According to statistics,nearly 60 years global airlines by about 1%,the average of the industry as a high in the industry the high cost and low profit is the label for the industry,and its low profit greatly is the result of high cost,cost control is particularly important for airlines,not only can effectively control the cost for the enterprise to bring greater profit space,in the face of the crisis also can help enterprises to reduce the loss to relieve stress.Low cost airlines in our country development space is big,market potential is tremendous,followed by the increasingly fierce market competition,which makes the airline’s face huge profit pressure,set up only 16 years of spring airlines take the lead in implementing cost leadership strategy choice,stand out from the numerous airlines,become China’s leading low-cost carrier.In this paper,on the basis of previous literature review,according to the theory of cost leading strategy,competitive positioning theory and cost control theory as a guide,using the SWOT analysis of its strategic location,the strategic map to analysis the specific implementation measures of its cost leadership strategy,and further analyzed its strategy implementation effect,hope for our country to provide experience for the cost control of aviation transportation industry.The research findings of this paper are as follows :(1)spring airlines chose to implement the cost leadership strategy due to the external pressure of fierce competition and internal weakness of its own capital strength.Its own cost control advantages and huge low-end market demand provide the possibility for the implementation of the cost leadership strategy;(2)Spring Airlines clearly defines its target group,makes cost leading strategy more in line with customer base,and achieves the purpose of optimizing cost strategy by implementing the business model of "two orders","two high" and "two low";(3)The cost of Spring Airlines has been effectively controlled,the cost profit margin has been rising steadily,the profit quality and EVA are at a high level,the implementation of the cost leadership strategy has not weakened the competitive position of the enterprise,and the implementation of the strategy has achieved significant results.Based on the above conclusions,this paper suggests that airlines :(1)attach importance to strategic cost management,optimize fleet structure,rationally plan the way of aircraft introduction,and control the cost from the source;(2)Improve the utilization efficiency of core resources and amortize fixed costs;(3)Reduce the high cost of fuel and maintenance,control the cost of sales and management,and reduce the cost to seek greater profit space;(4)The low-cost strategy model is easy to be copied,so the company needs to constantly improve,find auxiliary strategies to assist the implementation of the cost leadership strategy,so as to enhance the core competitiveness and seek long-term and stable development.