The Decline and Reorganization of Hainan Airlines

Research Article
Open access

The Decline and Reorganization of Hainan Airlines

Xiyue Zhang 1*
  • 1 University College London；London；WC1E 6BT；United Kingdom    
  • *corresponding author xiyue.zhang.22@ucl.ac.uk
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/34/20231673
AEMPS Vol.34
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-089-9
ISBN (Online): 978-1-83558-090-5

Abstract

At the beginning of 2020, the sudden new crown epidemic spread rapidly around the world, which had a huge impact on various industries. Especially in the air transport industry, the profit margins of various companies are gradually declining. The problems of Hainan Airlines have also gradually emerged. Due to the company's bond default and lack of internal control, it declared bankruptcy and reorganization. In this context, through research on Hainan Airlines' operating conditions and management strategies, it is proposed that the new crown epidemic is not the main factor affecting its bankruptcy reorganization. It is due to the continuous accumulation of various hidden dangers of the enterprise. And found that the main problems of Hainan Airlines are: (1) Insufficient profitability leads to the potential crisis of insufficient liquidity, and the company's assets cannot be effectively used, which drags down cash flow; (2) The transportation industry is under heavy competition pressure and there are diversions; (3) There are problems in internal management, and the excessive expansion in the early stage has led to the dislocation of Hainan Airlines' asset structure and the occurrence of insolvency. After a comprehensive analysis of the reasons for the bankruptcy and reorganization of Hainan Airlines, it is proposed to enhance the company's operational capabilities and conduct business in multiple ways to increase profits; to diversify financing and optimize the bond structure of Hainan Airlines; to further improve the internal control of the company to avoid further dictatorship. appear once.

Keywords:

Hainan Airlines, bond default, internal control

Zhang,X. (2023). The Decline and Reorganization of Hainan Airlines. Advances in Economics, Management and Political Sciences,34,52-58.
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References

[1]. Jinhao Jiao.: Research on Financial Risk Control Issues and Countermeasures under the Diversified Operation Strategy of Hainan Airlines. Tianjin University of Finance and Economics (2020).

[2]. Yiwen Hu.: A study on the economic consequences of Hainan Airlines giving up redemption of perpetual bonds. Jiangxi Normal University (2021).

[3]. Qinyue Zheng.: Research on the Causes and Countermeasures of Hainan Airlines’ Bond Default. Beijing Jiaotong University (2021).

[4]. Shizhong Chen.: Why is the myth of Hainan Airlines shattered? -- Talking about the internal control of enterprises. Accounting of Township Enterprises in China (2022).

[5]. Haoyu Wang.: Study on the Influence of the Change of Leasing Accounting Standards on the Financial Affairs of Hainan Airlines. Tianjin University of Commerce (2021).

[6]. Case Analysis of Bond Default of Hainan Airlines, Xinpin Xie, Hebei University of Finance and Economics (2022).

[7]. ICAO.: Economic Impacts of COVID-19 on Civil Aviation. ICAO (2021). www.icao.int/sustainability/Pages/Economic-Impacts-of-COVID-19.aspx.

[8]. 2020 Annual Report of Hainan Airlines Holding Co., Ltd., PricewaterhouseCoopers Zhongtian (2021).

[9]. Liu Yanghui, Chen Hong, Liu Guofan.: Research on the Motivation and Economic Consequences of Hainan Airlines' Perpetual Bond Financing. Journal of Tianjin Business Vocational College (2021).

[10]. Maoshu Wen.: Study on The Motivation and Economic Consequences of Controlling Shareholder’s Tunneling--Taking HNA Group’s Tunneling of Hainan Airlines as An Example,Sichuan Normal University (2022).

[11]. Yi Li. Financing Structure Analysis -- Taking Hainan Airlines as an Example. The 15th (2022) Proceedings of China Construction Accounting Society 2022

[12]. Nan Du. Research on Financial Risk Management of Hainan Airlines under Diversified Business Strategy, Northeast Petroleum University (2022).

Cite this article

Zhang,X. (2023). The Decline and Reorganization of Hainan Airlines. Advances in Economics, Management and Political Sciences,34,52-58.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-089-9(Print) / 978-1-83558-090-5(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.34
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Jinhao Jiao.: Research on Financial Risk Control Issues and Countermeasures under the Diversified Operation Strategy of Hainan Airlines. Tianjin University of Finance and Economics (2020).

[2]. Yiwen Hu.: A study on the economic consequences of Hainan Airlines giving up redemption of perpetual bonds. Jiangxi Normal University (2021).

[3]. Qinyue Zheng.: Research on the Causes and Countermeasures of Hainan Airlines’ Bond Default. Beijing Jiaotong University (2021).

[4]. Shizhong Chen.: Why is the myth of Hainan Airlines shattered? -- Talking about the internal control of enterprises. Accounting of Township Enterprises in China (2022).

[5]. Haoyu Wang.: Study on the Influence of the Change of Leasing Accounting Standards on the Financial Affairs of Hainan Airlines. Tianjin University of Commerce (2021).

[6]. Case Analysis of Bond Default of Hainan Airlines, Xinpin Xie, Hebei University of Finance and Economics (2022).

[7]. ICAO.: Economic Impacts of COVID-19 on Civil Aviation. ICAO (2021). www.icao.int/sustainability/Pages/Economic-Impacts-of-COVID-19.aspx.

[8]. 2020 Annual Report of Hainan Airlines Holding Co., Ltd., PricewaterhouseCoopers Zhongtian (2021).

[9]. Liu Yanghui, Chen Hong, Liu Guofan.: Research on the Motivation and Economic Consequences of Hainan Airlines' Perpetual Bond Financing. Journal of Tianjin Business Vocational College (2021).

[10]. Maoshu Wen.: Study on The Motivation and Economic Consequences of Controlling Shareholder’s Tunneling--Taking HNA Group’s Tunneling of Hainan Airlines as An Example,Sichuan Normal University (2022).

[11]. Yi Li. Financing Structure Analysis -- Taking Hainan Airlines as an Example. The 15th (2022) Proceedings of China Construction Accounting Society 2022

[12]. Nan Du. Research on Financial Risk Management of Hainan Airlines under Diversified Business Strategy, Northeast Petroleum University (2022).

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