The Financing Lease Pricing Research

Financial leasing, first started from America in1950s, is a newly developing financial industry which combines capital and assets leasing. Compared to traditional leasing, it creatively charges rents by actual time leasers take leasing-cost in possession. In virtue of this unique feature, it gains new development globally, especially in projects on large-piece equipment, among which lease on civil airplanes are of growing importance. Benefitting from airplane-leasing, airlines could retain rights of planes with lower costs and risks.The proportion of leased planes in major airlines of foreign countries counts to approximately60%, which help expend and mature the market. According to estimates, civil airlines in china will grow into the largest market in terms of domestic passenger transport. Unfortunately, airlines are bound to import planes from giant airplane manufacturer abroad like Boeing or Airbus as civil airplanes independently researched and developed are rare in the domestic market. Given this context, substantial investments are injected to civil airplane manufacturer in R&D of C919. Compared to developed countries, China’s airplane leasing market is still in its infancy, no matter with respect to number of planes or companies running the leasing. From this background and R&D of the industry, this paper analyzes pricing of financial leasing for civil airplanes.This paper first introduces the overall development of airlines both at home and overseas, as well as the features and overview of airplane-leasing. Secondly, on analysis of pricing model, we limit the financial leasing price interval for leaser and lessee respectively. With findings drawn from the model, there are several factors that possibly influence the results:interest rates, exchange rates, depreciation, and residual value. We further optimize and make supplement for the model in this part. The fourth part of the paper includes an airplane-leasing contract case, which offers data for rental pricing model of financial leasing. When price interval is set, analysis on rationality of contract execution is examined. The last part of the paper estimates financial leasing price of domestically made C919and carries out a simulation of C919’s leasing price before listing. As for related parameters such as aircraft machine prices, interest rates, depreciation, the lessee’s expected income, expected costs and tax rates; this paper gives reasonable estimates and analysis, and would ultimately obtain a financial leasing price interval.