Research On The Financing Decision-making Of China's Airlines

Air transport industry is a special industry representative with huge capital requirements.It is a key issue for airlines that how to make good financial decisions.This article,through the interpretation of financing decision theory and airline financing status,and the internal and external influence factors of financing decisions,take China Southern Airlines Corporation as an example to discuss how to optimize the capital structure of airlines,the financial leasing and operating leasing,and give advice on financing risks prevention.The reason why this article chooses China Southern Airlines Group as an example are: CAAC conducted a phased reform in 2003 and merged nine major Chinese airlines into three major aviation groups,namely China Southern Airlines Group Corporation,China Eastern Airlines Group Corporation and China National Aviation Corporation..China Southern Airlines Group Corporation is one of the three major groups,and it is the largest civil aviation company in China.Its financing decisions have attracted much attention.The main innovation of this paper is to use the case analysis method to analyze the internal and external factors of financing decisions,combined the comparison of the financial indicators of the three major aviation groups,find out the reasons for the problems in the China Southern Airlines financing decision,and propose ways to optimize problems and suggestions for risk prevention.This paper finds that the problems existing in China Southern Airlines financing include:(1)the form of financing still needs to be diversified;(2)the debt ratio is too high;(3)the utilization rate of aircraft leasing financing needs to be improved;(4)the proportion of internal financing is low.The research of this paper reveals that under the background of increasing domestic and international air transport demand,China's aviation companies need to accelerate the expansion of their fleet size.China Southern Airlines,as the three major aviation groups,studies on its financing decisions and proposals for optimization have implications for China's aviation companies' financing decisions.