Abstract: With the development of economic globalization, Shaanxi aviation industry was in a passive and low position of the Global Value Chain. There are many factors can account for this problem. The purpose of this paper is to find the factors influencing Shaanxi aviation industry upgrading based on Global Value Chain. By using the theory of Global Value Chain and industry upgrading, the analysis model of the impact factors of the aviation industry in Shaanxi is established. The model reflects that endogenous and exogenous factors affect Shaanxi aviation industry upgrading together. The endogenous factors include technological innovation ability, high level human capital investment, industrial enterprise scale, brand effect and the degree of joint enterprise. The exogenous factors include government support, institutional innovation, productive service, global value chain governance model and external economy. From a strategic point of view, Shaanxi aviation industry should optimize the allocation of resources in the industry, enhance the competitiveness, and participate in the international division of aviation industry actively to improve the level of international cooperation.