Aircraft Financial Leasing Influence And Decision-making Research

In the past decades, along with the further deepening of economic globalization, world aviation market open gradually, and people material standard of living continues to improve and the rapid growth of market demand, China Airlines usher in the development of the good opportunity. However, due to intense competition in the industry, of high operating costs and other factors, the airlines has shown high growth, low efficiency characteristics. The face of strong market demand, how to effectively expand their business scale, to seize market share, reduce and control operating costs, and obtain sufficient profits to meet the goal of survival and development, is a major problem of the aviation companies.Finance leasing is one of the main ways to imports aircrafts. It played a positive role by expand the scale of operation and financing demand. Because the huge asset value, the complicated trading structure and project duration risk long and complicated characteristics, resulting in its decision-making is a complex process, often involving the company’s development strategy, marketing planning, fleets planning and financial planning problem. About the airline aircraft financing leasing problem, a lot of literatures focus on the comparative analysis of operating leasing, mainly expounds the advantages and disadvantages of mainly two ways. There are many literatures focus on the development of China’s financial leasing industry, the main emphasis is on lease to the promotion of economic development. This paper stands in the airline’s perspective, combined with practice, focus on the financial influence and the decision of aircraft financing leasing.Aircraft leasing affected the airlines capital structure, the direct result of corporate assets and liabilities rate. The rise of Assets liabilities ratio.directly affects the company’s solvency appraisal and social image, high Assets liabilities ratio will affect the financial system of the aviation company’s credit rating, led directly to the future financing ability reduction. Aircraft finance leasing and loan purchase contrast, not only the financing cost contrast, more financing channels contrast. In inflation, environment of tightening credit, finance leasing often become the airline’s only choice. Similarly, with an operating lease, lease flexibility is very difficult to become a choice determinant, because excessive broken fine will aggravate the airlines operating burden. Aircraft finance leasing is not a financial problem, different ways of financing will produce different economics effects, these factors often becomes an important basis for the decision making of the management.