Research On Financial Strategy Of China Eastern Airline

In the background of world economic slow recovery,the growth of China's air transport industry is still maintained a fast speed.With the increasing demand of the air transport market,airlines are facing increasing complex competitive environment.But because of the air transport product homogeneity,airlines are difficult to form the distinctive characteristic of the products,the price is almost the only way of competition between airlines.Therefore,the external environment and emergencies increasingly affect the normal operation of the airline,high debt management for airlines increased a lot of financial cost and risk management.This paper adopts the method of case study,select the China Eastern Airlines Company as a case.By using the theory of financial strategy for Eastern Airlines financial strategy analysis,find out the existing problems,and puts forward the corresponding improvement measures to solve the problem.This paper is divided into five chapters.The first chapter describes the research background,purpose significance,and clear the research method.The second chapter introduces the basic theory of financial strategy,and introduces the domestic and foreign researches,and makes a brief review.The third chapter introduces the basic situation and companystrategy of China Eastern airlines.Then combined with the strategic environment and the financial strategy matrix found that the financial strategy of China Eastern Airlines have the problem of the surplus of capital and couldn't create value for company.Finally,from the financing strategy,investment strategy and dividend strategy to make a deep analysis for the problem.The fourth chapter in view of the existing problems,and put forward some policy suggestions from the corporate governance,financing,investment direction,dividend distribution and external policy etc..The fifth chapter summarizes the conclusion and points out the existing problems.