The Study Of Aircraft Asset Securitization Financing Model

With the rapid development of Chinese economy and the frequent exchange of inter-region, the demand for aviation passenger and freight transportation is growing steadily.China will become the world's most promising aircraft financing market due to the influence of the rapid development of the domestic civil aviation transportation and the increasing number of fleet purchase. Meanwhile, the rapid expansion of the fleet also leads airlines and aircraft leasing company directly to high financial leverage level and high financing costs burden. The characteristics of capital-intensive industry force aircraft leasing companies and airlines to solve the problem about the diversification of financing channels to liquidize remnant assets, reduce the financing costs, optimize the financing structure and reduce business risks. The Aircraft securitization skills just meet the urgent problem of aircraft financing. However, the securitization, which origin from the US, are introduced into China late, and promoted slowly because of the subprime mortgage crisis, the range of applications is also extremely narrow. The securitization of aircraft asset has developed quite mature in the US and European countries, but no any practical experience in our country.This paper based on the current situation of air-transport industry and aircraft leasing industry in China. By analyzing and learning mature models and the process of development of asset securitization of aircraft financing in European countries, then summarizes the successful experience and enlightenment of asset securitization of aircraft financing models from our country. The fourth chapter in this paper discusses the implementation of asset securitization of aircraft financing model in our country is feasible. Then, this paper combines our country's current policy environment of taxation, law and financial regulatory, explores the selection of a viable model of asset securitization of aircraft financing, researches securities pricing, risk management, and policy's barriers and other issues. The sixth chapter analyses the obstacles that exist in the process of model's development in terms of law,regulatory, service facilities, personnel training and so on, and puts forward some proposalsfor further development. This paper studies the application of asset securitization in aircraft financing in order to provide a viable model to use as reference for our country's aircraft leasing companies and airlines to carry out asset securitization of aircraft financing business.