Research On Cost Management Of Airline A Based On Value Chain

The aviation industry occupies an important position in my country’s transportation industry.The "14th Five-Year Plan" pointed out that my country should steadily build feeder airports,general airports and cargo airports,actively develop general aviation,strengthen the construction of international air cargo capacity,and optimize the allocation of shipping and aviation resources.Low-cost airlines are a type of airlines whose business strategy is usually to attract customers through lower fares to gain a certain market share.In order to achieve its cost leadership strategy,low-cost airlines need to perform fine-grained cost management.Because the airline’s cost value chain generally involves upstream and downstream related companies,the refined management of the cost of each link in the value chain can provide support for the company to achieve the optimal cost as a whole.Based on the idea of value chain cost management theory,this paper studies the cost management of Airline A(hereinafter referred to as Company A).First,use the literature review method to explore the relevant theories and applications of value chain cost management;second,use the method of strategic analysis to conduct a strategic analysis of company A and its environment,and choose the cost management mode for it according to the cost-leading strategy Provide support;again,analyze the cost structure of company A,clarify the controllability of various cost factors,and explore the impact of various costs on the value chain activities through the structural cost driver analysis method;finally,on company A The value chain of the company is analyzed from two aspects: internal and external: the cost of the internal value chain is divided into network planning costs,marketing costs,and service costs;the external value chain costs include jet fuel costs,aircraft and engine usage costs,maintenance costs,and airports Expenses etc.Through the comparative analysis method,analyze the relatively large cost factors,and propose the corresponding cost management plan.The conclusions drawn in this article are as follows: First,in many cost items,the cost related to the internal value chain is relatively controllable.Company A should mainly conduct cost management from marketing costs,operating costs,and management expenses;Second,in company A’s external value chain,there is room for improvement in aviation fuel costs,airport fees,and maintenance costs.These improvement measures can further reduce the cost of various activities in the value chain for company A and help company A to Reasonable cost control,so as to provide support for its realization of cost leadership strategy,and enhance A company’s market competitiveness.At present,the research objects of domestic scholars are mostly full-service airlines,and the research on low-cost airlines is relatively scarce.The innovation of this article is to apply the value chain cost management system to low-cost airlines,which extends the scope and breadth of the value chain.At the same time,this article combines strategic analysis with cost management.On the basis of strategic analysis,it is helpful to propose a targeted and feasible cost management plan for the research object.