Case Study-Critical thinking Essay Example | Topics and Well Written Essays - 2000 words

Case Study-Critical thinking - Essay Example This action has made the airline compete effectively in an industry faced with stiff competition. This paper examines the factors that have contributed to China Southern Airlines’ competitive advantage. In addition, the paper looks at how its growth affects other airlines. Andrade and Stafford (2013) say that in the year 2000, the Civil Aviation Administration of China declared its intention to merge the 10 airlines it managed into three airline groups. Later CAAC merged the airlines into Air China Airline, China Eastern and the airline under study China Southern (AmCham China News 2004). Following that merging, China Southern has since become one of the three largest carriers in the country (AmCham China News 2004). According to China Southern Airline (2013), Southern Airline serves over 193 destinations in 35 different countries across the globe. The company is a regular in the local market with its main hubs being at Guangzhou Baiyun International Airport and Beijing Capital International Airport just to mention a few. In the year 2012, China Southern Airline (2013) reported that China Southern Airlines carried over 9.1 million local and international passengers which translates to an average load factor of 81%. Such a huge number of passengers car ried by the airline clearly show it controls the airline industry in the Asia-Pacific. Following the merging of the airlines, it remains, therefore, that China Southern has two main competitors i.e. Air China and Eastern China. Air China, a major carrier in the People’s Republic of China, has its headquarters in Shunyi District in Beijing (China Tours n.d.). The airline’s flights are mainly out of Beijing Capital International Airport. According to China Southern Airline (2013), the airline carried an average 51 million local and global passengers in 2012. China Eastern, on the other hand, has its headquarters based at Changning District in Shanghai. The airline’s focus is at