Research On The Risk Assessment System Of Aircraft Leasing Business Of China Southern Air Leasing Company

Aircraft leasing was born in the United States in the 1960 s.It is regarded as the crown jewel of leasing with high quality assets and stable income.Aircraft leasing business was introduced into China in the 1980 s,marked by the introduction of the first aircraft by China international trust and investment corporation in the form of American tax leasing.However,due to the high tax burden,China’s aircraft leasing business development is slow.Until 2009,ICBC leasing completed the first bonded lease of aircraft in China through Tian Jin Dong Jiang free trade zone,which greatly reduced the tax cost of aircraft introduction in China,and the aircraft leasing business in China entered the fast track of rapid development.From 2009 to 2015,with the rapid development of China’s economy,China’s aircraft leasing industry also experienced a golden period of prosperity and development.Since 2016,due to the global economic downturn,airlines have been under increasing operating pressure,and defaults,bankruptcies of airlines happened a lot.Many aircraft leasing companies were involved into the bankruptcies of air Berlin and Indian Jet airways.In line with the trend of international economic development,China’s economy has also entered the stage of medium-high speed development from high-speed development.In order to prevent financial risks,the government has strengthened financial supervision,deleveraged,reduced debts and strengthened supervision,comprehensively rectified financial chaos,severely cracked down on illegal financing and private banking,tightened liquidity in the financial market and reduced the continuity of credit.In this environment,many listed companies have defaulted,and the "HNA default incident" has shocked the global civil aviation industry.Aircraft leasing business is facing more and more risks,the requirements of aircraft leasing business is higher and higher,the risk management is more and more difficult.China Southern Air Leasing Co.,LTD.(hereinafter referred to as CSAL)was established at the end of 2016,is a wholly-owned subsidiary of China southern airlines group.It serves China Southern Airlines Group internally to realize the combination ofindustry and finance.Externally,it serves the aviation industry as a market player.CSAL adheres to market-oriented,professional and international operations since it was built.As an aircraft leasing company who is still in the stage of entrepreneurship,it requests CSAL to be efforts to improve its management ability,especially the aircraft leasing business risk management ability,to establish a risk assessment system suitable for the risk appetite of itself if CSAL wants to expand the external business vigorously and guard against business risks effectively when facing the changes of external environment and requirement of strict internal risk management.Based on the relevant risk management theories and risk assessment methods,combined with the characteristics of aircraft leasing business,and by referring to the study of relevant literature,this thesis analyzes the risk assessment of aircraft leasing business of China Southern Airlines,and finds out the existing problems and deficiencies of current risk assessment.This thesis identifies the risks and risk factors of aircraft leasing business through expert investigation by Delphi method and constructs the risk assessment indicator system of aircraft leasing business,determines the weight of each evaluation indicator by AHP,and determine the scoring rules of the risk assessment system by fuzzy comprehensive evaluation method.This thesis applies of the risk assessment system founded in practical cases,according to the risk score,find out the key risk factors of specific projects,take corresponding measures to control the risk,prove the rationality and effectiveness of the risk assessment system.At the end,the relevant safeguard measures for execution of the risk assessment system are proposed.