H Airline Financial Risk Management Case Study

2018 is a key year for the implementation of the 13 th Five-Year Plan.China's economy is shifting away from high-speed growth to high-quality development,and the number of domestic passengers has increased steadily.China's outbound tourism has maintained a high-speed growth trend,and global oil prices have been lowered.However,the opening of the "four vertical and four horizontal" high railway lines has a greater impact on short-distance transportation in the aviation industry.At the same time,China's economic growth has slowed further.Global civil aviation is competing in the Chinese civil aviation market,and the situation of global security is severe.Thus,the aviation industry not only has development opportunities but also faces challenges.In the ordinary course of business,airlines have many internal and external factors cause the negative effects to their development and competitiveness.Financial risk is essentially a capital operation risks.For the modern enterprise,working capital in business activities to support the operation of their overall funding,and is the foundation of sustainable management and health development.Therefore,company should have identification and analysis processes to avoid financial risks in its long-term development.Based on the relevant theories of financial risk management,this paper focuses on case analysis from H Airlines by using the quantitative analysis method.According to the 2013-2017 financial statements of H Airlines,the report analysis method will be used to identify and analyze the financial risks of the company firstly.It includes fundraising,investment,capital operation and capital liquidity.Secondly,applying AHP analytic hierarchy process to analyze the overall financial status of H Airlines.In this method,it calculates the indicators that have significant influence on the financial early warning of enterprises in order to present the degree of influence and risk classification of these indicators of H Airlines.In the end,proposing the scientific and reasonable recommendations of risk management based on the identified financial risks.