A Airlines Corporation: Research On The Aircraft Leasing Business

As the main production tool of airlines,aircraft,because of its high value,high technology and other characteristics,directly affects the development status and direction of airlines to a certain level.Generally speaking,airlines introduce aircraft mainly through purchasing and leasing.Compared with the direct acquisition of aircraft,leasing aircraft can better fulfill the requirements of airlines to reduce a large capital outflow in the short term,improve financial conditions,and avoid the residual value risk of old aircrafts,which can effectively control the company’s operating cost and reduce operating risk.Therefore,more and more domestic airlines currently choose leasing to be their main method of introducing aircraft.The choice of various leasing structures will have different and crucial effects on the subsequent airlines’ strategic development planning,market positioning and operating cost control.Hence,it is of great significance for the development of airlines to rationally arrange the aircraft leasing process,adjust and design the aircraft leasing structure.At present,most of the existing domestic and foreign studies only focus on how to optimize or adapt itself to the whole leasing market from the perspective of the government or the supplier of the leasing market,or analyze the distinctions among different leasing structures and their corresponding impacts.Few studies have been conducted from the standpoint of airlines.A few studies composed through the perspective of airline managers and also concentrate on how to improve the aircraft leasing structure to minimize the operational risk of airlines or uplift the level of financial management,rather than a comprehensive analysis and summary of the difficulties and solutions encountered in the process of aircraft leasing business.Based on the above background,through carefully reading all kinds of documents related to aircraft leasing at home and abroad,and carefully studying the relevant laws,regulations and policies promulgated by the state,after fully understanding the current situation of the aircraft leasing market faced by China’s aviation enterprises and the business processes and professional fields involved in aircraft leasing,this paper attempts to take A Airlines Corporation as the research object,from the perspective of the managers of A Airlines,this paper reviews and summarizes three typical problems confronted with A Airlines in the course of developing aircraft leasing business in the past 20 years: aircraft delivery is easily bottle necked by the upstream industry,leasing mode selection is greatly influenced by policy,and aircraft rent refund is challenging.This paper also makes an in-depth analysis of the internal causes of the above problems,and then studies the specific situation of A Airlines.In the consideration of the current development level and medium-term and long-term development plan of A Airlines,three solutions and rectification suggestions are put forward in order to add more tools to better handle these problems faced by A Airlines in aircraft leasing business.Finally,the following conclusions are drawn: with the continuous development and maturity of financial markets at home and abroad,as well as the increasing attention and efforts made by the Chinese government to the aircraft leasing business,the aircraft leasing market faced by China’s airlines is becoming increasingly perfect,and there will be more and more leasing structures,leasing companies and leasing modes for airlines to choose in the future.In this process,China’s airlines must firmly grasp their own development characteristics,accurately match their own needs with the results of various leasing modes,actively innovate in correspondent with their own actual conditions,and explore new leasing modes.At the same time,airlines need to pay a close attention to the changes of policies and markets,retain and train diverse professionals,constantly optimize the organizational structure of company management,and anticipate and guard against possible risks in the future.Only in this way can Airlines fully enjoy these advantages brought with the development of aircraft leasing business,it maximizes their strengths and avoids weaknesses and grows themselves rapidly,and stands out in the civil aviation transport industry in China and even in the world.