AEMPS

Research on the Financing Decision of Spring Airlines

Author

Xiang Zhang * 1

1 Hebei GEO University

Corresponding Author

Xiang Zhang

Keywords

Spring Airlines, Financing and financial decision-making, Optimization of capital structure

Abstract

With the rapid development of China's airline industry, more and more funds have been needed for new construction. Capital shortage will be an important reason restricting the expansion of the company. To alleviate the problem of lack of funds, this paper investigates all factors inside and outside the company that influence financing decisions, studies the case of Spring Airlines Co., Ltd., explores ways to optimize its capital structure and monetary funding plan in the aviation industry, and proposes some relevant suggestions. This paper finds that these three specific issues--a single source of funding, a high debt-to-asset ratio, and a low proportion of internal financing--will affect all the sources of funds for the company, increase its leverage-to-asset ratio, and reduce the amount of new domestic funds available for construction. Some specific suggestions have been put forward to address the above problems: restructurise liabilities, increase the channels for attracting overseas capital, and strengthen the internal capital system. With the continuous increase in demand for aviation around the world, Chinese airlines have been raising aircraft purchase plans and have faced higher financial pressure. As a budget airline that focuses primarily on commercial air navigation and passenger transport, the financial situation and capital strategy of Spring Airlines are very representative of the sector.

Citation

Xiang Zhang. Research on the Financing Decision of Spring Airlines. AEMPS (2026) Vol. 287: 1-8. DOI: 10.54254/2754-1169/2026.LD35262.

References

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