| During the "12th Five-Year Plan" period, the investment of Chinese civil aviation industry will exceed the amount of 1.5 trillion RMB, which is a 50% increase compare to the amount of 1 trillion RMB during the "1 lth Five-Year Plan" period. At the end of the phase, the amount of aircrafts will reach 5,000. For domestic civil airline carriers, although it might be a golden age of rapid development after the financial crisis, it requires higher financing abilities to introduce a large number of aircrafts during the development phase of the airline carriers.Therefore, under the premise of risk controlling, among a variety of financing models, choosing one with the lowest costs has become a realistic problem also with a promising research value. The purpose of this study is to investigate pros and cons, financing structure, and applicability of the three major aircraft financing models mostly employed by airline carriers at present, to conduct schematic design and feasible analysis of the virtual application of innovative asset securitization financing model in airline carriers, to ensure airline carriers are able to select the most applicable aircraft financing models that meets the market competition requirement with minimum operating risks and the lowest financial costs.This paper contains four chapters, by combining the development trend and financing trait of Chinese civil aviation industry, comparing, analyzing and evaluating Chinese aircraft financing models, and engaging in a systematic elaboration, design and research of the virtual application of asset securitization aircraft financing, it provides recommendations and specific solutions concerning external problems and difficulties in domestic aircraft financing. The first chapter, combining the history and current condition of Chinese civil aviation development and the planning and development of civil aviation during the "12th Five-Year Plan" period, elaborates Chinese civil aviation industry's own characteristics and the operational features of domestic airline carriers, analyzes the prospects of Chinese airline carriers and aviation market development in the near future, and demonstrates the importance and indispensability of aircraft financing to the airline carriers.The second chapter briefly summarizes various types of aircraft internal and external financing models, and in addition, explains and analyzes three aircraft financing models mostly employed by Chinese airline carriers including export credit, operational leasing, and financial leasing. This section explicitly analyses the financing channels, financing structure, financing costs, relevant risk types, and other factors of the three major financing models, and by contrast, summarizes the characteristics, critical risk control points, and application environments of these three models.The third chapter:Asset securitization, a financing model being actively promoted by international communities, was never employed by domestic airline carriers in their aircraft financing projects. Starting from the asset securitization's theoretical basis and applicability in civil aviation industry, this part of the paper commences schematic design of a project in which C Airline carrier finances and introduces aircrafts by issuing assets assured securities, it then evaluates the characteristics and obstacles of the asset securitization financing model of airline carriers.By incorporating status of the Chinese capital market development, the last chapter suggests specific measurement aiming external problems when developing aircraft financing of airline carriers, whilst poses specific policy recommendations for the domestic asset securitization development. Currently, most of the Chinese civil airline carriers prefer a single financial leasing model when purchasing aircrafts, and the studies of aircraft financing in the academic communities also focus primarily on this model. Exchange rate and interest rate volatility will pose risks to the operation of airline carriers that employ only leasing model for aircraft financing, thus sustain economic loses. To decentralize operational risks, using a portfolio of models for aircraft financing is highly necessary.Because one of the airline carriers'operational characteristics is the ability to obtain a relatively stable cash flow, it is a favorable foundation for airline carriers to launch asset securitization. The main purpose for airline carriers to promote asset assured securitization is to reduce financing risks and costs by utilizing innovative financial model. This paper not only offers a valuable reference, but also designs and demonstrates a feasible innovative model for selecting aircraft financing models during the newly development phase of domestic airline carriers. |
