A Study On Aviation Leasing Assets Securitization

With the rapid development of China’s civil aviation industry,airlines continue to increase their demand for planes. According toBoeing， the market size of Chinese aircraft leasing over the next20yearswill be about150billion USD, and so the aviation leasing market has agreat potential in China. After the promulgation of the “Measures for theAdministration of Finance Leasing Company”, the overall leasingindustry has entered a rapid development path. The asset scale increasedmore than20times within5years. In2012, the asset scale exceeded1trillion RMB. All of large domestic leasing companies have focused onaircraft leasing business. However, the financing problem has constrainedthe rapid development of the leasing industry.In March2013, China Securities and Exchange Commission issued“The Securities Company Asset Securitization Business ManagementProvisions”, which marks that the asset securitization business in Chinahas entered a new stage. Through asset securitization, leasing companiescan further explore the financing channels, and the securitization isespecially suitable for aviation leasing assets, which create the continuousand stable cash flow. This present thesis summarizes the related literature on assetsecuritization and aircraft leasing. Then it introduces different aviationleasing types, risk, economical efficiency, and the value aviation leasingmarket. Chapter4focuses on securitization principle, aircraft leasingassets securitization application at home and abroad, and the related riskanalysis. In Chapters5and6, the thesis uses the static cash flow yieldmethod to build aircraft lease asset-backed securities pricing model andtest the model, and conducts the sensitivity analysis. Finally, the thesisprovides the summary of the research, and discusses the innovations,shortcomings, and development trend in the field.