China Easternairlines Essay

2552 WordsMay 22, 201511 Pages
CHINA EASTERN AIRLINES: A STRATEGIC ANALYSIS ECON7002 WANG XUAN [ID: 43627570] INTRODUCTION China Eastern Air Holding Company, headquartered in Shanghai, is one of the three largest major state-owned air transport companies in China. Its scope of business includes ‘public air transportation, general aviation and air transport operations and the production and sale of related products, aviation equipment and equipment maintenance, passenger air transport, freight services and ground handling, aircraft leasing, and aviation training and consulting services’.1 China Eastern Airlines Corporation Limited, as the core of the company, is the first listed company in Chinese civil aviation industry. ‘It flies a fleet of more than 500 long-haul serves nearly 6.7 million travelers monthly and ranks among the world’s top 5 airlines in terms of passenger transportation volume.’2 Based on the 2013 annual report of China Eastern Airlines, we can easily get the conclusion that the core strength of it is is rooted in its domestic flight lines business (chart 1). Chart 1:3 The objective of this essay is to use the tools of economic analysis and relevant diagrams to illustrate how current Chinese government policies could affect the domestic passenger lines business of China Eastern Airlines and its competitiveness within the domestic market. 1 http://en.ceair.com/about/zjdh/index.html Introducing China Eastern Air Holding Company. http://en.ceair.com/about/zjdh/index.html Introducing China Eastern Airlines Corporation Limited. 3 Data source: 2013 Domestic Airlines Data Report, Civil Aviation College, Nanjing University of Aeronautics and Astronautics, Nanjing. 2 -1- NATURE AND CHARACTERISTICS During the past few decades, the air transport industry has grown dramatically and has become one of the most essential industries of countries

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