Research On The Influence Of Aircraft Acquisition Methods On The Airline's Capital Structure

Since China's reform and opening up has begun, Chinese aviation transportation industry has developed rapidly. In 2015, the total turnover volume is 85 billion ton-kilometers, with the year-on-year growth of 13.6 percent. By the end of 2015, China has 2645 transport aircrafts, which are 275 more than in 2014.According to the forecast, by the end of 13 th Five Year Plan, China will have 4600 transport aircrafts.Airplanes have always been the most important fixed assets for airline companies. The way air corporation bringing in fixed assets will exert tremendous influence over its capital structure. Since Chinese airline companies have a large demand for money and have a high-level of single fund raising and financing pattern, the analyses over different aircraft acquisition methods are significant to the capital structure of airline companies.This paper is divided into four parts to study the influence of aircraft acquisition methods on the airline's capital structure. Firstly, introduce the aircraft acquisition decision-making theory and capital structure decision theory, aircraft acquisition decision-making theory introduces the existing aircraft acquisition ways and the aircraft acquisition decision making; The capital structure decision theory introduces the concept and significance of the capital structure, cost of capital, capital structure theory and capital structure decision factors.Secondly, analyze the current situation of Chinese airlines' aircraft acquisition methods and capital structure. The analysis of aircraft acquisition methods current situation is mainly from two perspectives, the current situation of Chinese airlines' aircraft fleet structure and characteristics of aircraft acquisition methods,analysis results show that in recent years the domestic big three airlines proportion of loans to introduce plane droped, lease of aircraft ratio increased.The comprehensive analysis of the capital structure current situation is mainly from four perspectives, the asset-liability ratio, the rate of long-term debt, the shareholders' equity ratio and ROE,analysis results show that in recent years, domestic capital structure of the big three airlines is given priority to with debt capital, equity capital is complementary, the cost of debt capital financing lease cost has risen year by year, lending cost has declined year by year.Thirdly, analyze the influence of aircraft acquisition methods on the airline's capital structure from the qualitative and quantitative aspects. From the qualitative aspects, aircraft operating leases way has the greatest influence on the capital structure of the airlines, financing lease second, borrowing money to buy is a minimum; From the quantitative aspects, the ratio of borrowing money to buy the plane is higher, the capital structure is worse, the ratio of financial leasing aircraft is higher, the capital structure is better; the ratio of operating leasing aircraft is higher, the capital structure is better.Fourthly, based on the foregoing analysis, build aircraft optimization model of the way of introduction,and design an optimization plan about the Auspicious airline's aircraft acquisition methods with the actual situation of the Auspicious airlines.