Research On Financial Risk Management Of China Eastern Airlines

In the process of sustained growth of the economic level,people have more and more choices about travel modes.At this stage,the number of people who choose to travel by plane has gradually increased,and the aviation industry has also developed at a high speed,the problems have become increasingly prominent.According to statistics from the Civil Aviation Administration of China,the asset-liability ratio of China's civil aviation industry exceeds 80%.At the same time,since most of the aircraft's fuel trading,aircraft leasing are settled by foreign currency,the exchange rate changes have a greater impact on airlines,and the cost of jet fuel also has a great impact on airlines.Therefore,airlines are inevitably facing various financial challenges and risks.So how to effectively identify and control the risks of airlines has become a problem worthy of discussion.According to the report,there are four major aviation group companies in China:Air China,China Eastern Airlines,China Southern Airlines and Hainan Airlines.As one of the four major airlines,China Eastern Airlines has a reference to its financial risks for the entire civil aviation industry.Therefore,this article selects China Eastern Airlines to do case analysis,evaluate its financial risks and propose control measures.Based on the research on financial risks at home and abroad,this paper uses Eastern Airlines' 2011-2018 annual report as a data source,uses the financial indicator method to identify the financial risks of China Eastern Airlines,from financing risks,investment risks,operational risks and specific identification of the four aspects of cash flow risk.The financial data of 11 listed airlines listed in the aviation sector of China were selected as risk samples for the research samples,and the factor analysis method was used to evaluate and analyze the ranking of Eastern Airlines' financial risks in the industry.Control measures including adjusting the financing and debt structure,controlling the cost of aviation fuel,formulating the dividend distribution policy,and setting up the interest rate hedging.Value-for-money transactions.It is expected to benefit the future development of Eastern Airlines and contribute to the financial risk control of the entire civil aviation industry.