Analysis Of Financial Condition And Operating Efficiency Of The Listed Airlines

After nearly 50 years development, China has become a big country in civil aviation area in terms of passenger and cargo tone kilometers. But big country does not necessarily equal strong country. Between Chinese airlines and top airlines in the world, there is a great gap in respect to total assets, global market shares, and profitability. Not anyone Chinese airline has entered top 20 airlines list. How could China step into strong country list is a vital issue encountered by civil aviation.By comprehensively applying financial analysis methods, including horizontal analysis, common size statements analysis, and ratio analysis, together with financial management theories, based on 4 airlines (China Southern Airline, China Eastern Airline, Shanghai Airline and Hainan Airline) 3 years (2000-2002) annual reports, the thesis summarizes the profitability, liquidity, solvency and leverage status of airlines, and deeply analyzes the causes of current financial status with industry characteristics. Simultaneously, the thesis illustrates the airlines' operation characters that mostly influence financial managements, and evaluates the airlines' operation efficiency with industry indexes. Besides analysis, the thesis provides financial management proposals connecting with liquidity management, price risk management, diversification management, seasonality operation management, credit control, inventory control and staff efficiency management. Recommended practices are also noted.Hope this thesis can provide a reference for Chinese airlines to solve the tough issue of becoming world top airline.