Research On The Development Of China’s Aircraft Financial Lease Industry

The majority of international financial institutions are involved in the field of aircraft financing lease industry not only because it has the controllable risk and stable income, but also is it regarded as an important way to maintain long-term benefit of the financial assets. It has been 30 years since China carried out its first financing leasing business since the year1980. However, our aircraft financing leasing industry has not been largely developed, on one hand, due to the internal factors such as lack of a large chain of funds and risk control mechanism; on the other hand, because it is largely affected by the external factors such as industrial policies and macroscopic environment.China’s aircraft financial lease industry has ushered in unprecedented opportunities to open up the existing market under the background of the economic transformational age along with the strategy of silk road economic belt". Compared with the traditional bank credit, financial leasing combines both characteristics of financial funds and assets. Financial leasing companies can not only get the benefit of accelerated depreciation, delayed tax, reduced financial costs, what’s more, they will save cost on technology and equipment upgrading. In this way, the capacity of the enterprises will be enhanced.This paper introduces basic theory of finance leasing and take the four countries’(the United States, Japan, France and Island)popular financial lease modes as the example to summarize the experiences and lessons as reference to China’s financial lease industry. In contrast, China’s financial leasing has several problems such as insufficient financial channel, imperfect tax policy and laws, cumbersome approval process and unsynchronized industries coordination and so on. Meanwhile, I take advantage of SWOT model to make the investigation on aircraft financial leasing industries in Tianjin Dongjiang free trade port zone,including its strengths, weaknesses, opportunities and threats combined with Tianjin aircraft leasing industry experience and policy direction expectation. Finally, from policy support, financing, industry cooperation, aircraft manufacturing and tax aspects, some suggestions are put forwarded with the aim to boost the overall competitiveness and the healthy development of the industry.