Research On The Financing Risk Of Air Transport Industry

With the continuous development of the Chinese economy,China's GDP reached 82.71 trillion yuan in 2017,and its GDP increased by 6.9 percent,ranking the world's leading position.The air transport industry plays an important role in the social economy and is an important link in economic exchanges.It has an indispensable position.With the rapid development of the world economy,the overall development of the air transport industry has transitioned from the original period of establishment and exploration,development and growth,to the current mature period.However,it should still be clear to us that China's air transport industry is developing later than the rest of the world,is in a tendency to pursue transcendence,has a weaker international competitiveness than the developed countries in the West,and still has a gap with the developed countries in the West.Rapid growth will require substantial financial support.The continuous development of the air transport industry needs huge financial security,because one of its characteristics is that it is a typical capital-intensive industry.The reasonable financing structure can influence the performance level of listed companies,standardize the market behavior of enterprises,and improve the corporate governance structure.This in turn has an impact on an industry.From one point of view,the air transport industry should reasonably reduce the financing costs in the process of obtaining funds.From the other point of view,each airline should ensure a large amount of capital supply to disperse investment risks.To sum up,it is of profound long-term significance to plan a reasonable financing strategy based on the theoretical basis and the different characteristics of the airlines.Combining market advantages and various financing methods,we should seize new opportunities,dare to practice and innovate to the greatest extent possible to increase corporate profits,and provide solid reserves and strong support for the development of enterprises with reasonable financing strategies.This paper first introduces the background of financing in the air transportation industry and the need and significance of financing in the air transportation industry.Starting from the theoretical basis of financing,the author expounds the financing methods and main influencing factors as well as the financing risks in the process of financing.This paper discusses and analyzes the typical financing cases of HNA in China's air transport industry,combs the financing methods and M&A financing activities of Hainan Airlines in recent years,and mainly introduces HNA's creditor's rights financing,equity financing,financing leasing and M&A financing activities.According to the actual situation,the author makes reasonable analysis,identifies and evaluates the risks faced by the different financing methods chosen by HNA,and puts forward reasonable solutions to the financing risks mentioned in the analysis,which brings practical significance to HNA to avoid financing risks.In the end,we should discuss which factors should be considered to choose the financing method of air transport enterprises under the new situation,sum up the risks in the financing process and put forward countermeasures and suggestions.At the end of this paper,the author summarizes the whole text and makes a forecast of the financing path of air transport enterprises.