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Hub for Air China's route network construction

Author: WuTong
Tutor: LiuYingZuo
School: Capital University of Economics
Course: Business Administration
Keywords: Route network construction Hub and spoke network Competition Airline Tactics
CLC: F562
Type: Master's thesis
Year: 2009
Downloads: 309
Quote: 1
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Abstract


By the financial crisis and other factors, the completion of the Chinese civil aviation industry in 2008 total revenue of 209.6 billion yuan, total profit of -282 billion global air transport industry as a whole is expected to losses over the calendar year level. The face of such adverse operating environment, as the only flag carrier in China - China International Airlines must adopt a positive attitude by changing the route structure to cope with the challenges of the global financial crisis. For larger airlines, the hub route network mode is a competitive tool for their survival and development, airlines route network mode have an important impact in the market competition to select a different competitive strategy, at the same time be the airline's profit model impact. Based on the Air China how to select the hub and spoke network mode, as well as how to optimize to improve this route structure more in-depth research in the future. This paper reviews the process of change of the route network of the airline industry model, and draws on the course of development of the large advanced European airlines, Air China recognize only the construction of the hub and spoke network mode to high-speed development, improve their competitiveness. And analyzes of Air China's own conditions, and the competitive environment facing, combined with the development goals and build a hub and spoke network is an inevitable choice. Air China as the background, and conducted in-depth research focus on the establishment of a hub network safeguards and development strategy: 1, the hub of the construction of the same need for government policies to support the improvement of the policy environment will help to speed up the pace of construction of the Air China hub; 2 require airlines and airports to establish a hub and spoke network to tie together; Both are essentially a total loss of the strategic partnership and common prosperity; join the airline alliance is an inevitable choice to optimize its route network, Air China to improve in the International Air Transport the competitiveness of the market, we must actively participate in the strategic alliance of international airlines, and at the same time, also provides a good opportunity to improve transport efficiency and economic benefits of Air China; 4, Chengdu regional hub as the overall Air China routes and service network in the western region of important node, enter Air China overall network and connect the world's aviation network of travelers play the role of \The development of competition in the market gave birth to the route network, be the airline's route network mode to provide useful help, examples of research combined with Air China, can provide useful lessons for other airlines. This has positive implications of the General Administration of Civil Aviation of China to further deepen the reform to cope with international competition.

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CLC: > Economic > Transportation and economic > Air transport and economic > China 's air transport
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