Research on China’s civil aviation market structure and monopoly airlines social responsibility

Based on transportation and production index from 1995 to 2012, the comprehensive utility function of Chinese civil aviation industry is established by principal component analysis. The results showed that the evolution of Chinese civil aviation transportation Industry can be broadly classified into three phases: the embryonic period, starting period and development period. The Chinese civil aviation industry is oligopoly market as showed by the market concentration . Aviation industry is traditionally regarded as a natural monopoly industry which has changed slowly. The degree of monopoly is decreasing in this decade, but the market is far from fully competitive. In that environment, industry leaders should undertake obligations and responsibilities according to their capacity. From responsibility to employees, passengers’ shareholders and external society, airlines social responsibility is analyzed. The evaluation model of China Airlines’ Social Responsibility under monopoly market structure is developed for the problem. An example China Eastern Airlines co. LTD is included to illustrate the computational procedure. The include information like market share, employees, accident symptoms, revenues, taxes and other typical index from 2008 to 2013. Results show that the combined market share of social responsibility evaluation is meaningful.