Article by hi joiney

Into June since the civil aviation market is “confused”: one ticket price war in full swing, cheap tickets flying; the one hand, increases as the price of jet fuel, airlines sharp increase in the cost of operating difficulties, the proposal to the national authorities to levy a fuel surcharge. This ticket price is higher or lower in the end, and the fare in the end of the rise or fall? After extensive research reporter that survive in the harsh environment, the airline is still an issue price is not out of the dilemma; only walk the road of establishing a modern enterprise system is the way to win. Front door of “Wolf” The cost of jet fuel costs account for four percent Airlines in China this year, the living environment of severe, described as “the wolf front door, back door with the tiger.” Since June 25, the State Development and Reform Commission to aviation kerosene prices increased 300 yuan per ton, which is after March 16, following the second price adjustment, two ton jet fuel prices up to nearly 800. Under normal circumstances, the cost of jet fuel expenses account for about 20% of the airlines. Now, this expenditure accounted for 40% of airline operating costs around. With strict management, low-cost airline known for Xiamen, and now a few months ago, compared with the monthly cost has increased by 30 million yuan. The face of difficulties, the airline wants to go the way prices. Raised fuel prices in the first post in April, Air China, China Southern and China Eastern have been combined to the National Development and Reform Commission for the levy of fuel surcharge, but was rejected. The reason is that countries price reform program for the airline fares go up 25% of the policy, the airlines did not use enough. Back door of “Tiger” Who do not follow up on lost market Airline no choice but to find the road to a dead end not only ticket prices, and the white-hot ticket price war against his teeth to force the airlines have to follow up. 5 month, Air China in Guangzhou to Shanghai route played Folding ticket, only 380 will fly from Guangzhou to Shanghai. Air passengers in the win over space, it also became the target for the industry. Downtown office in the city, people keep small ticket distribution Advertisement . Once heard from a reporter: Beijing a special ticket two Aviation Services Ltd. fold, also complimentary aviation insurance and airport construction fee. Civil aviation industry that the airline tickets as low as two fold, three fold level, the airline is definitely a loss. But the open, competitive market of tiger, the airlines have each kicked in, who does not follow up on who will lose market share. Home to Shanghai Airlines in Guangzhou route is not price cuts, the result is only a dozen passengers a trip flights. “Predators” to the Coveted China Foreign Airlines When domestic airlines are not killing each other inextricably linked, the greater the crisis is quietly approaching: International speculators arrived. 6 month, British Airways held in Shanghai, the inaugural ceremony of Shanghai to London route. On the same day, Lufthansa official said, Lufthansa is opening routes between China and Europe the most airlines, Lufthansa, China has become the most important market. China Foreign Airlines are playing the price war. British Airways launched a 3,990 yuan from Shanghai to London round-trip fares low. Lufthansa launched the ex-gratia of tickets ticket, Air Canada, Air France also launched discount air tickets. Showed double-digit growth in China’s aviation market, foreign airlines extremely coveted. The two sides in the next six years, will again have five airlines entering the market. Aggressive with these international predators compared to the three major aviation group in China to have much competition in lung power? Where is the way Establishing a modern enterprise system To the cost and surge, on the one hand a large price war, the bitter loss to swallow only by the airlines themselves. According to reports, the first half of this year, in addition to Air China and a few airlines, most airlines are losing money. Renmin University of China vice president of Public Administration Professor Xu Guangjian that airlines dare to make an issue of long-term price of the underlying causes are not in place state-owned enterprises. Although the three major aviation and the Civil Aviation Administration Group has been delinked from the Government if the operator’s performance appraisal and management responsibility for the lack of effective monitoring tools, business aviation is still not the primary objective is profit. In recent years, playing more and more intense price war, is proof. Xu Jian, , the reorganized airline to establish a modern enterprise system as soon as possible, the implementation of single cost accounting system. Countries choose social intermediary organizations to examine the costs of airlines, forcing enterprises to reduce costs. News Background Airline tickets reform process in China China’s civil aviation freight management, through strict control from the government to explore the gradual deregulation process repeated. 1992, China began to implement have lower domestic routes and 10% of the government guidance. 1997 years, this lower limit extended to 40%, while maximizing the return flight began on a trial basis to multi-class fare for the target system. 1999, the policy tightening, put a stop the low prices of air transport enterprises of measures, not allowed to discount tickets. 2000 years later, then gradually relax some Travel Routes, routes and regional aircraft flying alone, group travelers fare restrictions. 2004 issued in the year the price of domestic air transport reform program, reform is more than the previous one step further, allowing air transport enterprises in the floating rate benchmark price of not more than 25%, lower limit value of not more than 45% of baseline within formulate its own specific fare type, the level of application conditions.

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