Abstract

Numerous reasons contribute to the liabilities of a firm in the aviation industry. As a capital-intensive industry, the aviation industry has long faced high liabilities caused by the cost of purchasing necessary means of production. Also, the industrial feature that the aviation business has in its off-season and peak season has brought uncertainty to the industry. In addition, it has also experienced increasing pressure due to the decreasing travel and transport demands during and after the COVID-19 pandemic. Considering the reasons above, the debt management ability of an airline has become more essential than before to investors. This research will compare and analyze the debt level of sample firms in the aviation industry, and provide a basic overview of the sample firms business situation through utilizing a quantitative method and several indicators. The conclusion is that the differentiation in debt levels results from the differences in industrial features, firm situations, and operating and investment activities.

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