Research On Financial Risk Management Of China Southern Airlines

In recent years,the turnover of passengers received by domestic airlines has been increasing,with an increase of more than 8%.According to CAAC,by 2020,the number of registered transport aircraft of domestic airlines at the end of the year will reach 6747,and the total number of passengers transported will exceed 420 million.Even though the domestic air transport industry has ushered in a golden opportunity for development,the impact of the financial crisis on the domestic air transport industry in 2008 is still fresh in my mind.There is a significant gap between the macro environment and business environment of domestic airlines and most enterprises in the industry,and the financial risk caused by the industry characteristics is more significant.Therefore,it is of great significance to study the financial risk of airlines.Firstly,this paper combs,analyzes and summarizes the research results of enterprise financial risk at home and abroad,and takes it as the theoretical basis of this paper.Secondly,from the actual situation of the development of China’s aviation industry,this paper analyzes the internal risk and external risk of airlines,and evaluates the overall risk of domestic airlines by using Z-Model analysis method.It is preliminarily known that the overall financial risk of domestic airlines is relatively large.Thirdly,China Southern Airlines,which has significant financial risk,is selected as the research object of this paper,combining quantitative analysis and qualitative analysis,and using factor analysis method to select 44 groups of financial indicators from 2016 to 2019 to explore the causes and main forms of its financial risk.Based on the financial risk research of scholars at home and abroad,this paper analyzes the financial risk of China Southern Airlines from four aspects of financial risk,investment risk,operation risk and other risks by using the financial index analysis method.There are many kinds of financial risks in China Southern Airlines,the biggest of which comes from financing;Secondly,unreasonable investment,accounting policy,out of control of internal management and so on also cause great financial risks to the company;The fluctuation of aircraft fuel cost and the depreciation of RMB will also have a greater impact on the operation of China Southern Airlines;The risk caused by profit distribution has become increasingly prominent.China Southern Airlines’ market-oriented management concept is of great significance to the prevention of financial risks.Finally,this paper puts forward measures to deal with financial risks from four aspects: financing risk,investment risk,operation risk and other risks.Although this study mainly focuses on individual airlines,it is just a glimpse,in order to provide reference for China’s airlines to build a sound financial risk management and control sys tem.