Shanghai Airlines Goes about Structural ReformShanghai Airlines, the first inland aviation enterprise not under the Civil Aviation Administration of China (CAAC), which engages in independent operation and assumes sole responsibility for its profits and losses, has been changed into Shanghai Airline Joint Stock Company Ltd. upon the approval of the Shanghai municipal people's government and the CAAC.Established in 1985, Shanghai Airline has achieved satisfactory economic and social benefits through its excellent safety records, high-quality service and effective operation and management over the 15 years of furious competition. Its main business indexes have been in the leading level in the whole trade over the past few years, especially its profit level has jumped to the front ranks of the whole trade. Since 1995 when it became a pilot enterprise in the first group to experiment with the establishment of a modern enterprise system in Shanghai, Shanghai Airlines has been carrying out in-depth structural reform, including the property right system. In 1998, it was registered as a limited liability company with its shares held by six legal entities, such as the Shanghai Lianhe Investment Company, the Investment Firm of the Bank of China Group, and the Jinjiang Group. The fact that the Shanghai Airlines as a whole was restructured into a joint stock company Ltd. indicates Shanghai Airlines' effort to further improve the modern enterprise system featuring "distinct property rights, well-defined right and responsibility, separation of administration from enterprise, and scientific management", and its establishment of a new system of asset operation and management of a modern enterprise. The strategic goal of the Shanghai Airline Joint Stock Co. Ltd. is: comprehensively implementing its cross-century development strategy of "building a large company, group and base". Seizing the important historical opportunity offered by Shanghai that it will become a pivotal airport in Asia, Shanghai Airline Joint Stock Co. Ltd. will build itself into a large, first-rate domestic modern air transport enterprise that integrates the handling of domestic and foreign civil aviation passenger and freight transport business, at the same time, it also deals with the comprehensive development of tourism, commerce and trade, hotel and catering business related to aviation business. By PD Online staff Deng Gang |
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