Research On The Evaluation Of Financial Efficiency Of Airlines

Financial resources are the basis for the survival and development of enterprises.How to improve financial efficiency is always an important part of enterprise management.Since the new century,the global civil aviation industry has developed rapidly,and the demand for air transportation is strong.Airlines also strive to seize the development opportunities and vigorously expand the fleet size and capacity level.However,there is still a big gap between the profitability and operation ability of Chinese airlines and the world’s leading airlines.The traditional financial efficiency analysis can not accurately provide a clear direction for airlines to improve asset utilization and reduce various costs.Therefore,it is necessary to analyze the financial efficiency of airlines from the perspective of financial resources input and output.It is of great practical significance to build a scientific and reasonable financial efficiency evaluation system reflecting the business characteristics of airlines.Firstly,this paper reviews the relevant literature of financial efficiency evaluation,defines the concepts of efficiency,financial efficiency and airline financial efficiency,clarifies the purpose of financial efficiency evaluation from the perspective of Pareto optimality,enterprise competition and factor combination,and then selects data envelopment analysis as the evaluation method.Secondly,as an input-output system,which type of indicators should be selected to accurately evaluate the financial efficiency of an enterprise.According to the characteristics of super efficiency SBM model,the appropriate input-output indicators are determined to evaluate the airline’s comprehensive financial efficiency,as well as the cost control efficiency and sales efficiency.The redundancy and target value of each input index are given,which provides direction for airlines to optimize resource input.Thirdly,this paper uses the Global Malmquist index to analyze the dynamic financial efficiency,and then obtains the total factor productivity,financial efficiency changes and technical progress index of airlines,and analyzes the relationship among them.Finally,the threshold model is used to study the impact of average aircraft age on airline financial efficiency.The empirical results show that: compared with foreign leading airlines,the financial efficiency of China’s three major airlines is poor,mainly due to the low cost control efficiency;the three major airlines have a large degree of redundancy in terms of total assets,aviation fuel cost and aircraft use cost,and there has been a certain degree of technical retrogression in the past decade;there is an inverted U-shaped relationship between the average age of aircraft and financial efficiency;when the asset liability ratio is low,the average aircraft age has a positive effect on the financial efficiency,while when the asset liability ratio is high,the average aircraft age has an inhibitory effect on the financial efficiency.Combined with the results of empirical analysis,from the airline level and the national level,give relevant suggestions to improve the financial efficiency of Chinese airlines.