Hainan Airlines Debt Financing Risk Management Research

In 2016,the global economy remains in the weakness,but under the conditions of periodic downturn is gaining increasing trend.Compared with the global economic situation,China's economic development is not very good.Civil aviation industry as a whole show a clear contrast to the development of the situation,specifically as follows:In recent years,the aircraft has become the most convenient and popular travel option,civil aviation industry relys on it's own reform and innovation,slowly becomes the most importance of the country economy,and it also has a positive role in promoting the development of the country.the development of civil aviation industry can reflect the country's overall strength and competitiveness,and also reflects a country's economic level.The domestic market development is relatively slow,but in sharp contrast to the hot development of the international market,in terms of quantity and price,the markets of domestic and international different more seriously.In recent years,the impact of civil aviation transport is in the rapid spread,for example,it promotes the economic cooperation between countries,and it will inevitably affect the country's economy,coupled with China has gradually integrated into the economic globalization,The scope of the economic system is more expanded,therefore,its impact on China also showed a gradual upward trend.So it's more and more important to research the company's financial risk management.The paper taking debt financing case of Hainan Airlines Co.Ltd as the study carrier arranges and introduces the related theory of debt financing risk management,and expounds the meaning and incentive of debt financing,and defines debt financing risks according to the process of debt financing,and describes the debt financing risk management theory.These provide the corresponding theoretical basis for the following case analysis of Hainan airlines debt financing.Based on the relevant theory of debt financing risk management,the paper analyzes Hainan airlines debt financing activities,and adopts risk identification method of qualitative and quantitative combination to identify the debt financing risk of Hainan airlines which include the risk of decision-making stage before the debt financing,the risk of sustainability in the process of debt financing and the risk of operation stage after the debt financing.Then it uses the F-score model to evaluate the overall level of debt financing risk in Hainan airlines.Based on the above the recognition and assessment of Hainan airlines debt financing risk,the paper puts forward targeted control measures and suggestions for debt financing risk of Hainan airlines according to the theory of risk management process from each phase of debt financing.The paper recognizes and evaluates the debt financing risk of Hainan Airlines according to risk management process,and puts forward risk control measures from different phase.It has certain reference significance to the debt financing risk management of Hainan Airlines.In the meantime,it can enhance the understanding of finance risk management and provide practical reference for China's firms.