Research On The Free Trade Port Zone Financial Leasing Project

Until now, Chinese aviation industry has been developing rapidly, made many achievements that attracted high attention from both at home and aboard. According to the latest speech of CAAC, from 2012 to 2020, Chinese civil aviation will enter a new fast-developing stage. More than $210,000,000,000 will be pumped into our civil aviation during this time, and more than 2000 aircrafts will be supplied. As the civil aviation industry is a high investment, high risk, low return and competitive capital intensive industry, the average profit rate is less than 4%. The astronomical financial requirements cannot be satisfied if only depend on the industry’s own accumulation. The problem must be resolved through external capitals. Therefore, financing lease is the only way to fill the funding gap of Chinese aviation industry. At present, aircrafts introduced by financing lease accounted for more than 65 percent in China. Notable is, Chinese present aircraft financial leasing industry is growing gradually. Many Finance Leasing Companies, which have strong power in finance, exist in recent years. During their developing, Dongjiang Bonded Port supplies a lot of preferential policies to help, and the industrial aggregation effect of Dongjiang plays a great role.This paper make the theoretical analysis, comparative analysis and a case study to all kinds of foreign aircrafts’leasing mode, particularly analyze theory and case on current DFTP’s SPV (Special Purpose Vehiciles) financial leasing mode. The paper aims to demonstrate the existing advantages and future direction of Dongjiang’s financial leasing mode. Firstly, the related concepts of financial leasing, especially concept in accounting standards, are discussed in this paper. Then carried on to comparative analyze world’s aircraft leasing modes and Chinese present, introduced the characteristics of aircraft financial leasing. After that, paper analyzes DFTP’s financial leasing mode, introduced the establishment process and business process of SPV company. According to this, describes the possibility of DFTP to carry out aircraft leasing business, its present situation and development advantage. Finally, this paper analyses X company’s leasing projects. Through this, finding out the economic advantages of SPV-mode compared to other financial leasing modes, then giving four suggestions to Chinese aviation leasing industry...