The Impact Of Aircraft Leasing On The Effectiveness Of Chinese Airlines

The market demands of Civil Aviation Industry of China keep increasing considering the rapid development of China’s national economy,the growth of GDP and the requirement for fleets expansion and renewal from airlines side.Aircraft is the transportation tool for airlines,so the aircraft demands for airlines grow as well.We can draw the conclusion that there will be the great demands of aircrafts in Chinese market from both Boeing/Airbus’ s market outlook and the analysis of Civil Aviation Administration of China.Considering the capital,slot,financial condition etc,airlines prefer to acquire the aircrafts by aircraft leasing.China’s aircraft leasing industry was late to the foreign aircraft leasing,but developed rapidly.Based on the existed literature,this paper discusses the impact of aircraft leasing on the effectiveness of airlines from both qualitative and quantitative,combining the different methods like theoretical research,status analysis,case discussion and empirical analysis.First,this paper introduces the comparative advantage of aircraft leasing which is the main method for aircraft acquirement under the background that the demands of aircraft is increasing.Then state the related theory of aircraft leasing industry;and the aircraft leasing can be divided into financial leasing and operating leasing based on its natural classification.And this part also introduces the development history and current situation of aircraft leasing at home and abroad.At last,this paper discusses the impact of aircraft leasing on the effectiveness of airlines from qualitative and quantitative.On the one hand,that aircraft leasing can provide financing;helps airlines acquire suitable slot;adjusts the fleet flexibly;and saves the cost are listed to analyze the impact on the effectiveness qualitatively.On the other hand,considering the nature of property,age,fleets,asset-liability ratio and operation revenue of airlines,the paper selected all listed airlines as sample and choose return on equity as index to study the impact of aircraft leasing on the effectiveness of airlines.The final conclusion is that there is positive correlation between financial leasing and effectiveness,and the correlation of the operating leasing is not significant.But,if depreciation is taken into account,profit statement will be influenced because of a large amount of invested funds in the previous period.So operating leasing will make more profit in the short term.