Advances in Economics, Management and Political Sciences

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Proceedings of the 2023 International Conference on Management Research and Economic Development

Series Vol. 23 , 13 September 2023


Open Access | Article

A Comparative Study on Debt Risks of Chinese Civil Aviation Companies Under the Covid-19 Epidemic

Chen Liang * 1
1 Qingdao University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 23, 12-19
Published 13 September 2023. © 13 September 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Chen Liang. A Comparative Study on Debt Risks of Chinese Civil Aviation Companies Under the Covid-19 Epidemic. AEMPS (2023) Vol. 23: 12-19. DOI: 10.54254/2754-1169/23/20230343.

Abstract

As a highly indebted industry, the civil aviation transportation industry's debt risk management is crucial to its everyday operations. After the emergence of COVID-19 in early 2020, a number of airlines have been adversely affected by variables such as a reduction in the number of passengers, and their operating revenue has been severely impacted, with some even facing the possibility of insolvency. How to control the size and risk of debt is particularly crucial when income is low. On the basis of empirical analysis, this paper collects and sorts the financial data of three large state-owned civil aviation enterprises (China Southern Airlines, Air China, and China Eastern Airlines), selects several debt risk measurement indicators to analyse the impact of the epidemic on the debt risk of civil aviation enterprises, and offers corresponding recommendations for the management of airline debt risk.

Keywords

civil aviation enterprises, debt risks, COVID-19, empirical analysis

References

1. Official website of Ministry of Transport of the People's Republic of China, 2020. https://www.mot.gov.cn/tongjishuju/minhang/index_2.html

2. Franco Modigliani, Merton H. Miller The Cost of Capital, Corporation Finance and the Theory of Investment The American Economic Review [J] Vol. 48, No. 3 (Jun., 1958), pp. 261-297 (37 pages)

3. Jiao Ying. Strategies to deal with financial crisis in highly leveraged enterprises [J]. International Business Finance and Accounting,2009, No.251(11):32-33.

4. Official website of China Southern Airlines, 2021. https://www.csair.com/cn/about/gongsijianjie/

5. Official website of Air China, 2021. http://www.airchina.com.cn/cn/about_us/company.shtml

6. Official website of China Eastern Airlines, 2021. https://www.ceair.com/global/static/AboutChinaEasternAirlines/intoEasternAirlines/chinaeasternInto/index.html

7. Stephen A. Ross, Randolph W Westerfield, Jeffrey F. Jaffe, Bradford D. Jordan Corporate Finance, 11th Edition [M]. China Machine Press. 2018: 45-48.

8. Official website of China Southern Airlines, 2022. https://www.csair.com/en/about/investor/yejibaogao/2022/

9. Gu Yun. Research on Corporate Debt Risk and Control [J]. Tax Payment, 2019, 20.

10. Official website of Air China, 2022. http://www.airchina.com.cn/en/investor_relations/financial_info_and_roadshow.shtml

11. Official website of China Eastern Airlines, 2022. https://www.ceair.com/global/static/AboutChinaEasternAirlines/intoEasternAirlines/InvestorRelations/periodicReports/

12. PENG Q. Analysis of operation management and control of civil aviation enterprises under the impact of epidemic [J]. China Aviation Weekly,2020, No.1398(51):64-65.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2023 International Conference on Management Research and Economic Development
ISBN (Print)
978-1-915371-89-8
ISBN (Online)
978-1-915371-90-4
Published Date
13 September 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/23/20230343
Copyright
13 September 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated