The Application Of Income Method In The Valuation Of Low-cost Aviation Industry

Enterprise value evaluation is the product of market economy, it adapt to the enterprise restructuring, listing, merger, and transnational operation, and so on the needs of production and the development of economic activities. On September 13,2015, "the central committee of the communist party of China, the state council on deepening the reform of state-owned enterprises guidance" formally introduced,create more fresh capital market events. Along with the development of the securities market and perfect, more and more enterprises enter the capital market, listing,purchase reorganization, equity transfer and other activities, how to evaluate the real value of the listed company, and the core issue of value investment, around the enterprise value. So, value investing and the concept of value management is becoming more and more important. As the important organizational form in social economic activities, enterprises will face the winner lifelong slightly tide problem,enterprise value maximization, deserves the attention of all parties, its influence to the enterprise now and the future development. So how to carry on the objective and fair evaluation to the enterprise management situation, and how to understand and vividly depict the enterprise value, thus effectively promote enterprise value has become a meaningful topic. Income method to explain the enterprise value equals the present value of future cash flows, to measure the company's performance and long-term investment value. The present domestic research literature about valuations are mostly focused on the method, factor analysis, summary and case discussion between different industries. Fast development of civil aviation in China, low-cost aviation market development relatively late, less predecessors in this module. So the paper using the method of income to comb, low-cost airlines in the spring and autumn airlines company as a case, expanding the scope of the income method to use, add live case for low cost airline, also according to operating characteristics of the spring and autumn airlines at the same time, summarizes some more valuable way, for other management reference.This paper tries to combining theory with practice, according to the characteristics of low cost airlines contrast analysis of the pros and cons of differentmodels, found that the income method can clearly reflect the value of the company.The free cash flow model used in the spring and autumn airlines, combination of qualitative and quantitative, the external macro environment by using PEST model analysis, strategy using the SWOT model analysis, compared with the industry and its own historical financial data, find the data between the law of cash flow forecast in the coming years, it is concluded that the enterprise value. With market value to verify the rationality of the forecast. Finally, in the spring and autumn airlines operating conditions at present, summed up the value enhancement method.Based on the model using the innovation on the point is that the forecast during the spring and autumn airlines operating revenue, the aircraft introduced into management, in order to single aircraft operating income multiply by the next few years the company operating income, at the same time, from the historical data and forecast industry share verifies the rationality of two dimensions, ensure the forecast accuracy.Will predict data with spring airlines market value contrast, found the prediction result is reasonable. In the process of enterprise value assessment, the following two conclusions: first, pay attention to the key value node within the enterprise, strengthen the concept of open source throttling, without reducing the passenger satisfaction,flight punctuality, under the premise of flight safety, increase the utilization efficiency of the plane, and, in turn, increase revenue; At the same time, strict control of costs,increase the load factors, diluted operating cost, make the company's gross margin above the level of the industry, to create their own unique competitive power,competitors are difficult to imitate. Second, to expand enterprise external value chain,from upstream and downstream firms, integration of resources, and strive for win-win situation, for the spring and autumn period travel agency to provide charter services,one of the affiliated parties, high load factors, guarantee the smooth realization company profits.