Study On Risk Management Of Exchange Rate And Interest Rate In Chinese Airlines

" Risk" comes from the Italian risque, at the earliest stage appeared in the voyage trade and the insurance industries that meaned"objective danger", for example the reef, storm etc. Today," risk" is the meaning of the phrase already from first "meet danger", evolve into" the indetermination of the affairs", or is the possibility of the affairs appearance. In regard to business enterprise, the risk is that the future indetermination influences the target of the management. The business enterprise risk can be divided into the strategic risk, financial risk, the operational risk, unexpected risk etc.. And the risk of exchange and the interest rate is one of the core contents in the business enterprise financial risk management, also the most important part in risk management of the whole business enterprise. Rate of exchange and interest rate also are the most mature tool and techniques in the risk managemen. Because the theory of risk management continuously has developed in the last 20 years and the products based on the interest rate and exchange rate of finance risk management become the most rapid and active trade products that provides a lot of utilizable ways and implements for elusion aspect of interest rate and exchange rate for the airlines.The risk of exchange rate means that the exchange rate fluctuation causes the possibility of value up or down for the foreign exchange carriers or foreign exchange operators in the international economy or finance activities. The risk of interest rate means the possibilities that make the assets or debts of the enterprises lose due to the difference between expected level of interest rate and the actual level of interest rate on the market.Any enterprises that are engaged in foreign affairs the management could be influenced by the fluctuation of exchange rate, and any indebted enterprises would be impacted by fluctuation of the interest rate. The fluctuation and change of exchange rate and interest rate will result in the indetermination influence of income and expenses and debt cost of the business enterprise and may make the business enterprise deeply lost.Most of Chinese airlines are engaged in foreign affairs. On one hand, they face various exchange receipt and expenditure, on the other hand they borrow a great deal of foreign currency because of buying airplanes and materials. Therefore, how to effectively manage the interest rate and exchange rate to the airlines always is focused by the relevant persons. The airlines should draw up a set of risk management strategies and the management method of exchange rate and the interest rate to oneself circumstance.In this paper, we make the Chinese aviation conveyance enterprises engaged in foreign affairs be the representatives and give"Chinese airline" of brief name. First we describe the actuality and urgency of the risk management of exchange rate and the interest rate and looked back the history reasons of the problems of exchange rate and interest rate in Chinese airlines. Then combined the variety characteristics of interest rate and exchange rate, the author takes some Chinese airline as example to analyze the risk of interest rate and exchange rate that the airlines may face. This paper puts forward some pieces of advice and in combination with case analysis. At last, this paper puts forward procedures, blue print and management measures of risk management of interest rate and exchange rate.