The Effect Of Aircraft Acquisition Mode On Airlines Financial Condition

At present, the civil aviation transport of our country is developing very fast. In the first half of 2007, the total turnover volume of civil aviation transport is 16.7 billion ton-kilometers. It has increased by 19.7% as compared with that of last year. Some experts predict that between 2006 and 2010 the annual growth rate of the total turnover volume is about 14%.As the prosperity of our civil aviation market, most of the airlines are planning to bringing in lots of aircrafts. But behind the prosperity, we can see that the unreasonable aircraft acquisition mode has brought many problems, which effected the airlines financial condition and operating efficiency.Aircraft is the main fixed assets of airlines, it takes a lot of fund. There are three mode of aircraft acquisition ,which is purchase, financial lease and operating lease. Different mode has different effect on financial condition of airlines. In this paper, the author deeply studies the effect of aircraft acquisition mode on airlines financial condition, in order that provides some theoretical base on using reasonable aircraft acquisition mode to improve airlines'financial condition.This paper intends to formulate a qualitative and quantitative method .First of all, calculates the standard financial ratio of air transportation industry, and then uses this as a basis for comparison analyzing airlines financial condition of our country. Secondly ,analyzes the effect of aircraft acquisition mode on financial statement items. Then, uses AHP to evaluate the influence of aircraft acquisition mode on financial condition. Finally, uses case analysis, given some advice on financial condition improvement.