Focus on civil aviation- industry losses and unification of the fare.docVIP

 PAGE \* MERGEFORMAT 18 Focus on civil aviation: industry losses and unification of the fare Backgrounder ● 1999 years 21 days, the Civil Aviation Administration regulations, in accordance with published price of the fare sale, not free floating, and in April 1, by the State Planning Commission and the Civil Aviation Administration began to launch a nationwide price of air tickets for domestic flights special inspection . General Administration of Civil Aviation of China to return to the Chief limit management system. Airlines, the travel company, all passengers, received very mixed reviews. ● 1997 Nian 11 months, civil aviation system to implement ‘a fare, a variety of discount’ in the system, thus there was serious ticket price dumping, price war, sales promotions, the lowest discount airline tickets to reach half of the amount, four fold, more The airlines in order to gift small appliances, high rebates to agents disguised promotions vicious competition. ● 1998 Nian 5 months, Civil Aviation Administration of the provisions of fare discounts for the best Wu 8-fold lower; but in fact this provision was not implemented, the market price of the disorderly competition intensified, and ultimately the whole industry in 1998 led to a loss of up to 50 billion. ● 1999 Nian 5 Yue 1, the General Administration of Civil Aviation of China for the summer and autumn plans are adjusted for domestic flights, domestic flights 95 to reduce the frequency 766 times, reducing seat 92792, a reduction of 5% to reduce wasted space flight, to reduce costs. ● 1999 Nian 5 2, the youngest of domestic airlines - Hainan Airlines Co., Ltd. formal operation of six years, becoming the full implementation of ISO9002 quality certification system for airlines. HNA is the only joint-venture airline in 1998, industry-wide loss of civil aviation environment, access to after-tax profit of 140 million yuan, its size and performance to become one of the top ten airlines. Loss Reasons In 1