Analysis On Case Of Leasing Boeing 767 By Hainan Airlines To SFL

In January of 2003, Hainan Airlines Company Limited (HNA) and Shenzhen Financial Leasing Company Limited (SFL) had signed a leasing contract on a Boeing B767-300ER, which had successfully broken the monopolies on Chinese leasing market by foreign airlines for long time.To import this new aircraft by leasing contract, Hainan Airlines had not only fulfilled the booming demand on shipping capacity but also optimized its capital structure. This case introduced an option for airlines on capital structure and financial strategy in certain market and growing stage. Because of the huge project amount, SFL could not solve the lack of money only by itself. And the reasonable credit structure and risk control methods on leasing project become key factors to get support from commercial banks.By analysis on this project, I think the aircraft leasing on domestic market is necessary and feasible. The domestic leasing on aircraft could bring down the running cost of airlines, but also strengthen the global competitive ability of Chinese airlines, manufacturer of aircrafts and leasing companies. This business requires a well-established legal environment, and the support from the taxation authorities and the financial institutions. The supportive policies from government on industry, taxation and financial channels are also necessary.This article also believes, for the financial leasing company, only different marketing strategy for customers from different submarkets could meet the demand of potential customers and keep the stable increasing on business. Moreover, a stable and professional team is essentially necessary.