Research On Capital Airlines Debt Financing Risk Control

In recent years,the global economy is still in a weak state,but in a period of downturn,there is a rising trend.In the context of the global economic downturn,the domestic economy is facing more and more challenges,encountering many expected and unexpected shocks.Affected by the economic situation at home and abroad,the domestic and foreign markets of the civil aviation industry have shown a differentiated performance: most domestic airlines are in a stable development trend,while the foreign civil aviation industry continues to be hot.In order to strengthen their own strength and not to be eliminated in this fierce market competition,airlines have adopted methods such as expanding company scale,expanding fleet,and adding new routes.The development of these businesses often requires a lot of financial support.In addition to maintaining the normal operating activities of a company,cash is also the main pillar of the company’s profitable activities.However,the process of raising funds will also bring certain financial risks to the enterprise.At present,the main financing method of my country’s airlines is debt financing,and the financing risks they face are mainly the risks brought by debt financing.If the airline fails to conduct debt financing reasonably,or fails to use and manage debt financing funds reasonably,it will generate immeasurable financial risks.Not only will it lead to reduced profits,but it will even lead to financial crisis or bankruptcy for the airline.This article takes Capital Airlines as an example to study Capital Airlines’ debt financing risk control.As a traditional aviation company,Capital Airlines has the characteristics of high risk,high investment and low return.Capital Aviation’s financing method is basically debt financing,which causes Capital Airlines to face severe debt financing risks.Therefore,the research on the control of Capital Airlines’ debt financing risks becomes more and more urgent.The article is based on debt financing risk control theory,prioritized financing theory,internal control theory and enterprise early warning theory,with debt financing risk identification-debt financing risk comparative assessment-debt financing risk control as the logical main line,through theoretical analysis and case comparison research Combining methods and methods,it expounds the current situation of Capital Airlines debt financing and identifies the corresponding debt financing risks.The external risks include:macroeconomic risks,competition risks,jet fuel price fluctuation risks,financial risks and controlling shareholder debt risks.Internal risks include: debt financing scale risk,debt financing timing selection risk,debt financing channel selection risk,debt structural risk and capital use risk.And through the comparison with the financial data of Air China,the solvency risk and liquidity risk of Capital Airlines were evaluated.Finally,this article puts forward practical and feasible debt financing risk control countermeasures and suggestions for Capital Airlines’ debt financing risks from the following aspects: improving service quality and brand value;controlling jet fuel costs;strengthening interest rate and exchange rate risk management;optimizing financing structure;Broaden financing channels;strengthen capital use management;obtain guarantees or strategic financing from the Beijing Tourism Group and enhance risk prevention awareness and establish a debt financing risk early warning system.This article uses Capital Airlines’ debt financing risk as a research vehicle to identify and evaluate the risks of debt financing,and provide references for Capital Airlines’ debt financing risk control management.At the same time,it also provides reference for other airlines to realize the importance of debt financing risk control as soon as possible and start to develop a debt financing risk control system.