Abstract: Aviation economy is a hot word in both the civil aviation industry and the society as a whole. Based on the method of conceptual analysis, the paper reviews and analyzes the current development of domestic and international aviation economy. It is found that the existing concepts have many problems which need to be redefined, especially the concept of connotation of aviation economy and the state of agglomeration characteristics. Based on the competitive situation of the global companies,the paper puts forward four specific suggestions. The people's government at the provincial level should be the main subject of developing aviation economy in China. The core work should be setting an industrial agglomeration platform for the development of aviation economy. Scale control and differentiations of strategies should be realized. The further and healthy development of air transportation economy should be guaranteed.