Aircraft lease-purchase decision making – what influences airline management?

摘要

In the airline sector many aircraft are subject to long-term lease agreements in thernbelief that operating, investing and financing benefits flow to the lessee. This studyrnaims to provide a better understanding of lease-purchase decision-making from anrnairline perspective. Aircraft acquisition involves core assets that impact on costrnstructure, profitability and overall corporate performance. Although the leasernpurchase decision is a common scenario little current attention and limited empiricalrnfindings exist in Australia on the process of lease-purchase decision making by firms.rnThe airline industry has been chosen as the case object due to its heavy reliance onrnlease financing for major expenditure on aircraft. It was found that much of thernliterature on leasing is based on neo-classical economic theory of the firm and financerntheory, which rely on limiting assumptions about the real world. These theories arernconsidered in relation to the findings of the research but fall short of predicting all ofrnthe factors taken into account by management in its decision making. Post Keynesianrneconomic theory was found to be more relevant as it pragmatically recognizes thernuncertainty inherent in economic activity and the path dependency of decisions overrntime. The findings address an identified niche in the existing literature calling forrnempirical research on a) the decision-making rationale of the agent in lease financingrnb) the actual process and key players involved in lease-purchase decisions and c) thernimpact such decisions might have on financial reporting. A mixed method approachrnwas used in this study, combining survey data with interviews and other archival data.rnStatistical as well as a qualitative research software program assist the data analysis.rnThis study contributes to an understanding of the process of making the strategicallyrnimportant decision of acquiring aircraft from an airline perspective in Australia and itsrnramifications over the longer term on corporate financial performance.