Research On The Impact Of Financial Leasing To Financial Decisions Based On The Spring Airlines

With the prosperity of China's civil aviation market,Spring Airlines had a lagre number of demand for airplanes.In order to expand the market share further,Spring Airlines introduced airplanes actively.At present,an Airbus A320 NEO airplain is worthy of about 100 million US dollars,.The price is really expensive for Spring Airlines.It put great financial pressure on the company if Spring Airlines buy donzens of airplains.So the SPV model became a highly favored way gradually by Spring Airlines.This paper introduces the concept and characteristics of SPV model of financing leasing during the domestic and international mainstream airplane.The paper analyzes the Spring Airlines' introduction of SPV mode through Irish finance leasing,Tianjin Dongjiang Port SPV model.The paper discusses the influence of different airplain finance leasing SPV model on the financial decision factors such as cash flow,capital structure,depreciation policy,interest rate risk and exchange rate risk of Spring Airlines.The net present value model of cash flow expenditure of Spring Airlines is established and calculated under the different SPV models of finance leasing.At last,the paper analyzes how the fluctuate of interest rate changes influence the value of financial leasing airplains,the result has been calculated precisely.Through the above analysis,the paper puts forward some suggestions for selecting the best airplane introduction programme for Spring Airlines,and puts forward some countermeasures against the impact of the financial leasing on the capital structure and financial risk of Spring Airlinesunder under the SPVmodel.