Research On The Development Strategy Of Guilin Airlines

As an important link in the entire chain of the transportation industry,the shipping industry plays an important role in regional economic development.The civil aviation industry in Guangxi has developed relatively late and has long been dominated by airlines outside the autonomous region.Since 2015,HNA Group companies have successively established two local airlines in cooperation with local governments,namely Beibu Gulf Airlines and Guilin Airlines(Guilin Airlines Co.,Ltd.).Guilin Airlines is a low-cost carrier.It made its maiden flight in 2016 and completed its equity reorganization in 2019 to become a state-owned airline.After experiencing an early period of expansion,the development of Guilin Airlines has slowed down in recent years,and the fleet size has not expanded.With the advent of the post-epidemic era and the domestic economy gradually returning to normal,airlines need to seize opportunities to turn crises into opportunities to get rid of unfavorable situations,achieve profitability and seek development.Therefore,it is very important to formulate strategies suitable for the future development of Guilin Airlines.Guilin Airlines faces direct competition from the three major state-owned airlines in the market,and there are also multiple competitors in the low-cost market segment.As more and more airlines enter the Guangxi market,the smaller Guilin Airlines needs to locate itself and adapt to the competitive environment.After an in-depth analysis of the company’s strategic conditions,combining the strategic goals and the company’s actual situation,Guilin Airlines should choose a development strategy of intensive growth.At the same time,in terms of its competitive strategy,Guilin Airlines should adhere to the low-cost model,keeping costs at a lower level and taking into account differentiated competition.In order to achieve the strategic goals of the company,the company can propose strategic safeguards in terms of corporate management,operation and corporate culture.In order to achieve the development strategic goals,business activities should start from six aspects: building a self-operated sales system,exploring cargo potential,developing industry cooperation,opening up the regional aviation market,increasing non-aviation revenue,and dynamically optimizing the route network.