| Project Title: | The Control and Countermeasures of Aviation Fuel Cost of Airlines in China—A Case Study of China Eastern Airlines |
| Author: | Mr. Li Changwei |
| Advisor: | Dr. Li Chunyou |
| Degree: | Master of Business Administration |
| Major: | International Business Management |
| Faculty: | Graduate Schools |
| Academic year: | 2022 |
| Url:
Published: |
Proceedings The 14th National and International Academic Conference “Empowering Innovtion and Sustainability in the Next Normal” 27 November 2021 |
Citation
Li, Changwei. (2022). The control and countermeasures of aviation fuel cost of airlines in China—A case study of China Eastern Airlines. (Master’s independent study). Bangkok: Siam University.
Abstract
This paper aimed to study the control and countermeasures of aviation fuel cost of China Eastern Airlines with the following objectives: 1) To explore the external factors and causes of high aviation fuel costs; 2) To explore the internal factors and causes of high aviation fuel costs; 3) To establish the airline fuel cost management system.
Through documentary research, this paper applied cost management theory, activity-based costing theory and risk management theory to construct the aviation fuel cost management system of airlines, including aviation fuel consumption management system and aviation fuel price management system. The result founds that: 1) The increase in aviation kerosene prices as a direct external factor of high fuel costs and the inevitability of administrative pricing as an indirect external factor of high fuel costs; 2) Inadequate management of aviation fuel consumption and poor risk control of aviation fuel prices were internal factors for high airline fuel costs; 3) The problem of high aviation fuel cost of airlines can be effectively solved by using aviation fuel consumption management system and aviation fuel price management system, as well as correct and reasonable hedging strategy: firstly to implement refined aviation fuel control; secondly is to improve flight crew operations, reduce aviation fuel costs, and do a proper job in aviation fuel cost control; and finally, in the process of China Eastern Airlines aviation fuel cost risk management and control, it should reasonably use aviation fuel price hedging strategy, improve aviation fuel hedging risk management, and control system, and open up new ways of risk management and control.
Keywords: cost management theory, activity-based costing theory, risk management theory.
The Control and Countermeasures of Aviation Fuel Cost of Airlines in China—A Case Study of China Eastern Airlines
Master of Business Administration (International Program), Siam University, Bangkok, Thailand