Airlines Cost Control in China: An Overlooked Perspective

Abstract

With the deepening of economic globalization, the business environment has seen profound changes. The cost of aviation fuel has grown to represent a significant portion of air transportation costs for “energy-dependent” airlines. The cost of aviation fuel makes up a sizeable amount of Chinese airlines’ cost structure and is increasingly limiting their profitability. The question of how to control the cost of aviation fuel from various perspectives has garnered widespread attention. This paper puts forward an overlooked perspective – the procurement strategy. Firstly, it describes the necessity of aviation fuel cost control, and then analyzes specific cases of aviation fuel procurement cost control. Finally, it proposes several effective suggestions from the perspective of aviation fuel procurement, aiming to improve the refined management of Chinese airlines’ aviation fuel procurement.