East Airlines Test hydro-Electric website continues to explore the road of East China's transformation

Absrtact: After a high-profile test of hydro-electric website, the Eastern Airlines did not stop. Recently, the Eastern Airlines in Shanghai set up Oriental Aviation Electronic Commerce Co., Ltd. (hereinafter referred to as the Eastern Airlines), continue to explore the transformation of Eastern Airlines road. Eastern Airlines, the current head of Liu, has been thinking

After a high-profile trial of hydro-electric sites, the Eastern Airlines did not stop. Recently, the Eastern Airlines in Shanghai set up Oriental Aviation E-commerce Co., Ltd. (hereinafter referred to as "Eastern Airlines"), continue to explore the transformation of the road East.

China Eastern Airlines, the current head of the Liu, has been trying to get rid of the airline industry's only "ticket sales" business model, and hopes to shift from "traditional carrier" to "Modern Air Service Integrator".

Airlines to transform the electricity business, has tried before, but more for failure cases. In the industry, airlines to expand downstream, through the full value chain, hoping to establish platform advantages, although the idea is good, but difficult to operate. At present, the Eastern Airlines electric business customer resources, Web site traffic and Taobao, Beijing and east compared with no advantage, to convert to consumption is not easy. More importantly, with the electrical business is closely related to the express industry, China Eastern is not successful, its air cargo business can not directly provide support to the electricity business. All this makes the future of Eastern airlines ' electric operators look foggy.

East Airlines Electric Power set up

The newly established Eastern Airlines is a wholly-owned subsidiary of China Eastern Airlines, which has injected 50 million yuan into the first round. From the specifications, China Eastern Airlines for the establishment of the company's high hopes. December 7, China Eastern Airlines chairman Liu, general manager Ma all attended the establishment ceremony of the Eastern Airlines electric dealer.

In accordance with the eastern aspect of the statement, the Eastern airlines to the east Airlines nearly billion passengers per year passenger traffic for the basis of customer flow, integration of various types of online, offline products and service resources, to provide users with travel related one-stop integrated products and services solutions. It is reported that in the day of the unveiling ceremony, there are more than 40 well-known enterprises from the electric business, tourism, Internet, technology and other industries representatives.

East Airlines has made no clear indication of what to do after the establishment of the Eastern Airlines. Eastern Airlines only said: "Eastern airlines will further strengthen the power of integrated market resources control, Collaborative introduction of more partners, and actively create travel integration products, resource sharing, large data fusion, integration of the common, online integration, flow introduction and other aspects of the depth of cooperation in order to finally realize the ' one ticket ' outside the value of integration, Customer integration and resource integration. ”

Wezhilin, general manager of Eastern Airlines, said in a media interview that China Eastern wanted to introduce more products and services and extend its services to passengers beyond transport. For example, in the official website booking, while providing rental cars, hotels and even tourism products, mining, in addition to the value of the ticket business.

Indeed, this approach is already close to the one-stop service provided by OTA today. In the industry, the airline companies through the increase in ticket sales to take back the ticket agents have been handed over to the customer resources, and now try to extend through the customer resources to more industry chain and product line.

But the industry is concerned that in Ctrip, where, art dragon, such as OTA big price war to compete for users of the situation, the East Airlines exerting force is too late, in addition to excel in passenger and freight services, in other product lines are lack of competitiveness.

Integrator of transformation

Reporter learned that in the face of the aviation industry high input, High-tech, high-risk, low output of the overall dilemma, China Eastern early in 2011 on the clear from the "traditional carrier" to "Modern Air Service Integrator" transformation of the development strategy.

At present, the profit of aviation main industry is more and more thin, according to calculate, in the past decade, global airline revenue profit margin only 2%, far below the industrial chain other link profit margin level.

Liu has been hoping to transform China Eastern into an integrated service integrator, connecting air carriers, hotels, car rental companies and other service providers, and connecting passengers and corporate customers, and China Eastern as a resource integrator and service docking center.

Cai Yang, chief information officer of China Eastern Airlines, said that the airline used to be the carrier's role, essentially a business-to-business company with hundreds of agents. And the future to become a company, directly facing 80 million of passengers, marketing services posed a great challenge. On the other hand, the profit model has changed. "In the past, based on the profit model of air tickets, the future is to establish a new profit model, that is, based on passenger resources and information platform economy." ”

For the transformation of Eastern airlines, Civil Aviation Observer Lin Zhijie to reporters: "Airlines to expand downstream, through the full value chain, if done well, can use the existing advantages to seize the emerging business, strengthen competitive advantage, establish platform advantages." ”

Lin Zhijie also pointed out that this transition will face many problems. Eastern Airlines ' competitive advantage is mainly the customer resources, website traffic and logistics network. But customer resources, website traffic and Taobao, Beijing and east compared with no advantage, and to convert to consumption is not easy. More importantly, with the electrical business is closely related to the express industry east is not successful, its air cargo can not directly provide support for the electricity business. In addition, the system is limited. The Internet emphasizes innovation, flexibility, and the management style of state-owned enterprises, there are few cases of successful state-owned enterprises in the Internet industry.