Financial Analysis Of China Eastern Airlines Based On Harvard Analytical Framework

In recent years,with the rapid development of my country’s economy,people’s consumption level has increased rapidly,and the demand for travel and other travel has increased significantly.An efficient and convenient transportation method such as airplanes is favored by people.While facing the opportunities brought by such a rapidly growing market demand,airlines also face the challenges brought by the increasingly complex competitive environment and social environment.Especially in2020,the new crown epidemic has swept the world,the economic development has pressed the pause button,and the operating conditions of the aviation industry are highly related to the external environment,encountering unprecedented difficulties and entering a "cold winter".At the same time,because the civil aviation industry,as a transportation industry that mainly provides passenger and freight transportation,provides products and services with a high degree of homogeneity,it is difficult for airlines to form distinct business characteristics.Against this background,airlines have put forward a series of strategic reforms based on their own development scale and market position to continuously improve their operational efficiency.This paper will combine the strategic goals of the enterprise,select China Eastern Airlines as a case company,and use the Harvard analysis framework to conduct comprehensive research and evaluation.China Eastern Airlines Group Co.,Ltd.(hereinafter referred to as "Eastern Airlines")is one of the three major domestic airlines,and its development and operation model represents the domestic civil aviation industry.Through comprehensive analysis and evaluation,it is of great significance to find its advantages and problems in the operation process,which is of great significance to my country’s civil aviation industry and transportation industry.Taking China Eastern Airlines as an example,this paper adopts the method of case study and applies the Harvard analysis framework to the case company.After introducing the development scale and operational status of China Eastern Airlines,using the Harvard analysis framework,it conducts a comprehensive analysis from the four perspectives of strategy,accounting,finance and prospects,and reveals the current operational advantages and disadvantages of the case company.It was found that the case company currently has problems such as insufficient capacity scale,great debt repayment pressure,cost management needs to be improved,and profit quality needs to be improved.Finally,according to the above questions,specific suggestions are given to help the future development of China Eastern Airlines.At the same time,this paper takes China Eastern Airlines as a case to analyze and evaluate it,which has strong practical reference significance for the sustainable development of China’s civil aviation industry,the deepening of the reform of state-owned enterprises,and the implementation of the strategy of building a civil aviation country.