Analysis Of The Expected Impact Of The New Lease Standards On Listed Airlines And Countermeasures

Leasing aircraft has become the primary way for current and future airlines to introduce aircraft,which can bring more flexible cash flow advantages to airlines.Aircraft leasing can not only expand the scale of aircraft fleet,but also provide financing for enterprises.China's leasing industry started late,but has been following the pace of international leasing standards.After the promulgation of the new international leasing standards in 2016,China also constantly revised the current standards by referring to them.In December 2018,the ministry of finance of China officially issued the new leasing standards and required them to be implemented in January 2019.Under the new standards,the operating leasing mode of lessees is cancelled,which,on the one hand,effectively alleviates the phenomenon of "off-balance sheet financing",improves the quality of accounting information,and on the other hand,worsens a part of financial data and indicators of aviation enterprises.Therefore,it is of great value to evaluate the impact of China's new leasing standards on airlines in advance.Based on this,this paper,after studying the main changes of the new lease criteria,compares the adjusted financial data and indicators of major airlines based on the "right to use assets" model under the new lease criteria.Then,taking Air China as an example,this paper analyzes the impact of the changes in the new leasing standards on the financial data of the airline,the purchase mode and related risks,and provides countermeasures for the airline.At present,domestic research on leasing standards is mainly based on theories,supplemented by simple data enumeration.This paper will select Air China as a case,and make an in-depth study of it with a large number of financial data.This paper features the following three points:(1)this paper is based on the study of China's new lease standards.Due to the slight differences between it and the new international lease standards,this paper compares the differences between the two standards in the overview part.(2)Compared with state-owned airlines,non-state-owned airlines suffer more serious deterioration of various financial indicators after the change of standards,which further restricts their financing channels.(3)Take Air China as an example,conducting quantitative analysis on his financial status and the expected impact of relevant risks;In addition,the reasons for Air China to rent and purchase aircraft assets are analyzed in depth with the financial statement data,and the influence of the new lease criteria on Air China's aircraft purchase mode is studied.The following conclusions can be drawn from the research of this paper:(1)based on a more authentic reflection of the financial situation of the enterprise,the new lease criterion will expose the hidden financial risks of the enterprise.(2)Compared with state-owned airlines,non-state-owned airlines suffer more serious deterioration of various financial indicators after the change of standards,which further restricts their financing channels.(3)after the implementation of the new leasing standards,the profit of Air China will be "lower before higher",so as to increase the cash flow ratio,improve the asset-liability ratio of Air China,and increase the enterprise's financial risk,interest rate and exchange rate exposure.No matter what leasing criteria are adopted,the introduction of aircraft through leasing has always been an indispensable part of the business strategy of airlines.Airlines should decide the term and type of aircraft leasing according to the enterprise's ability to bear risks,its own strategic plan and the external environment of the enterprise.The new leasing standards will be implemented this year.Airlines should deal with financial risks by strengthening lease contract management,cost control and active communication with all parties,and improving internal control of enterprises.Dealing with exchange rate risks by adopting SPV leasing model and adding protective clauses;Deal with interest rate risk by buying derivatives...