Research On The Impact Of New Leasing Standards On Investment And Financing Decisions Of The Private Aviation Industry

The aviation industry is one of the industries that rely on operating leased aircraft to maintain daily operations.According to the aviation industry report,in 2018,the proportion of Chinese airlines operating leased aircraft engaged in aviation business accounted for about 45%.The new leasing standard requires that the operating lease table will have a significant impact on the aviation industry.Based on the new leasing standard,this article uses CAS21(2018)relevant standard provisions to restate the 2018 financial statements of Juneyao Airlines,a listed company in the private aviation industry,and then provides a data basis for the impact of the new leasing standard on Juneyao Airlines' investment and financing decisions.By using case analysis and comparative analysis,this paper,based on the analysis of aircraft ownership mode and financing status of Juneyao airlines,on the one hand,the paper analyzes the change of ownership mode of their aircraft by the implementation of the new lease criterion.on the other hand,this paper analyzes the problems that the new lease criterion would bring to auspicious aviation financing,and further analyzes its impact on auspicious aviation managers' financing decisions.The study found that in terms of investment decision-making,for young airlines such as Juneyao Airlines,the motivation for operating leases under the old standards was mainly to hide the true level of assets and liabilities,and at the same time to achieve the effect of off-balance sheet financing to ease the pressure on funds.The implementation of the leasing standards makes the advantages of operating leases no longer exist.Therefore,the company will reduce the use of operating leases to occupy aircraft,and will use more financial leasing or self-purchase.In terms of financing decision-making,the implementation of the new leasing standards has led to Juneyao 's financing problems such as increasing the scale of on-balance sheet financing,increasing the difficulty of refinancing,relying too much on debt financing,too little equity financing,and increasing the difficulty of internal financing.A series of problems This paper designs four new financing schemes and determines the optimal financing scheme based on the principle of the lowest cost of capital.It also proposes that Juneyao Airlines should reduce the dividend distribution rate in financing decisions,increase internal financing,increase equity financing,and increase debt.For internal financing,more long-term debt financing is used.Finally,the corresponding suggestions for Juneyao Airlines to better deal with the impact of the new leasing standard on corporate investment and financing decisions.