Abstract

With the increasing economic development and gradual opening of China’s aviation market, the Chinese aviation industry is experiencing rapid growth and is facing some problems at the same time. Many scholars have assessed the profitability of the Chinese aviation industry using a single assessment approach. Both theory and methods in assessing the profitability of the airlines need to be developed and improved. This article presents a new integrated approach – a combination of factor analysis, principal component analysis, and gray relational analysis. Based on the theory of decision making and data mining, this more reasonable and effective model overcomes the one-sidedness and limitations of the individual methods and has significant impact in theory and practice.