1. Fierce market competition: Lake Airlines has been challenged by other well-known airlines, such as United Airlines, British Airways and other international airlines, as well as some local low-cost airlines.
2. High financial expenditure: The rapid expansion of Shanghai Airlines and the opening of several new routes need a lot of financial support. However, the financial situation of this airline is not stable, and the rising oil price and personnel cost, excessive advertising and other factors make it face enormous financial expenditure pressure.
The failure of Rick Airlines is caused by many factors. In the increasingly competitive aviation market, airlines need to strengthen risk control, management mechanism and financial control, and formulate development strategies reasonably to ensure that the risks of the company's early investment and huge financial expenditure can be controlled.