Research On Airline Leasing Strategy Selection

With the recovery of the global economy, the development trend of the air transport industry has improved. In order to survive and develop in the fierce competitive environment, the airlines need to strictly control the operation cost of the company. And the aircraft leasing has become the main means of updating and expanding the airline aircraft fleet. Aircraft leasing mainly includes two forms: financing lease and operating lease. There are different functions and effects to the airline because of the distinct form of leasing. Therefore it is necessary to make a further research on the choice of aircraft leasing strategy.In the first part of this thesis, we analyze the present situation of the management of air transport industry and the rental market. Therefore the selection strategy of leasing is significant. In this thesis there are two aspects to study the choice of aircraft leasing strategy respectively financial and non-financial factors with the case. We introduce airlines fleet, routes management and financial status of Air China Limited and China Southern Airlines in the second part. The third part and the fourth part of the thesis are the core contents. In third part, firstly, we analyze the differences between the financing lease and operating lease accounting principles. Secondly, we explore the effects of two leases of the company’s financial statements. Thirdly, we discuss the relationship between two kinds of the airline’s financial leasing because company’s financial statements have a direct impact on the financial ratios. In the final part of this thesis, non-financial factors are discussed. First of all, we introduce the characteristics of the supply and the demand of the aviation market. Then the impact of aircraft models, route selection factors and the form of leasing are analyzed. Finely, associations between two kinds of leasing the way and the strategy of the enterprise are explained.