Research On Financial Risk Of Hainan Airlines

Aviation industry is the basic and leading industry which is related to the national economic development and people’s life.Since the 1980s,China’s aviation industry has been expanding rapidly.The number of airlines and the network of airlines has increased rapidly and the capacity of transportation has increased significantly,however,compared with the companies in most industries in China,the airline industry is affected by the macro-economic environment,the characteristics of the industry and many factors within the company,and the financial risks are particularly significant.Persistent high oil prices,inflation,and volatile exchange rates and interest rates have led to continued financial risk events for airlines.Therefore,the study of financial risk control to effectively reduce the airlines,financial risk,increase the company operation and management efficiency and the profit space,enhance company competition ability has a positive role.To Hainan airlines companies as the research object,analyzing the existing financial risk,and fundamentally solve the problem of Hainan airlines,financial risk control,guarantee the company to achieve long-term development goals,also for Chinese airlines,the improvement of the financial risk control to make a certain contribution.In this paper,through the enterprise financial risk control of the main research results at home and abroad to control the financial risk of related theories are reviewed and analyzed the factors influencing the domestic airline company financial risk control,and describes the present situation of civil aviation transportation industry,and as a case study of the basic situation of Hainan airlines and the present condition of the company’s financial risk control.By adopting the combination of comparative analysis and ratio analysis method based on the actual situation of Hainan airlines to Hainan airlines of the existing financial risk identification,reveals its financial risk mainly forms a deep insight into the company causes of financial risk,using the qualitative analysis combined with industry data and annual reports to Hainan index to evaluate the company’s financial risk,and according to the articles of the company’s financial risk analysis and evaluation of Hainan airlines the problem of financial risk control is put forward.Finally,the paper puts forward some suggestions to improve the financial risk control of Hainan airlines.