Research On The Cost Of A Airlines Based On Value Chain Theory

Over the last decades,the aviation industry has been in a state of rapid development,and all countries around the world are very supportive of the aviation industry.Even if there is a trade war,countries have never restricted the aviation industry of their rival countries.It is well known that the aviation industry is a tool for the integration of the world economy.Only when the aviation industry develops faster and faster,the process of world integration can be gradually shortened.Therefore,the progress of the aviation industry,for all countries,is crucial.In this regard,China strongly supports the development of the aviation industry and has introduced a number of policies that lead to the development of the aviation industry,seeks to increase the advancement of tourism and related industries through the aviation industry,accelerate China’s openness abroad and engage in better international competition.Better participate in international competition.But as competition in the aviation market intensifies,some problems emerge.Faced with the impact of the Covid-19 in 2019,some airlines in the aviation industry collapsed and retreated in the red sea competition.Studies have found that most of the closures are small,inefficient airlines,while large intercontinental airlines and low-cost airlines,though equally hard to survive,remain standing.The survival of these airlines represents a very strong competitive advantage,most of which comes from strict cost control.In this paper,A aviation is selected as the research object,the value chain model is taken as the basic framework,the trend is analyzed by proportional analysis method,the differences are analyzed by comparative analysis method,and the basic activities and auxiliary activities,vertical value chain and horizontal value chain in the internal value chain of a aviation are analyzed by combining quantitative and qualitative methods.finally rests on its cost control,in view of the discovered question,puts forward the corresponding improvement suggestion.also hope to provide reference for the development of other airlines through the analysis of A airlines costs.First of all,A airlines has some problems that most companies in the aviation industry have,such as high aircraft use costs and aviation fuel costs and can not be fundamentally reduced.Tax leasing can only reduce rental costs and purchase costs by establishing upstream and downstream strategic alliances.Secondly,in the internal value chain,there are problems such as low conversion rate of R & D cost and low operation efficiency.This paper suggests to solve the problem with fine management and application of relevant methods.Finally,the problems of fierce competition in the aviation market and high agency cost can be solved by opening up new market and developing independent sales system.