Research on the Sustainable Development and Dynamic Capabilities of China’s Aircraft Leasing Industry Based on System Dynamics Theory

Weiwei Lin,Jing Lu,Jinfu Zhu,Li Xu

doi:10.3390/su14031806

Abstract

The Boeing 737 MAX crisis and COVID-19 pandemic have seriously influenced the development of China’s aircraft leasing industry in the past two years. This paper applies system dynamics theory to explore the sustainable development of China’s aircraft leasing industry. It analyses the dynamic mechanism and constructs a system dynamics model. Based on China’s macroeconomic data and historical data from the financial, aviation, and leasing industries, it aims to stimulate the development of China’s aircraft leasing industry in the next five years. Through sensitivity analysis, this research finds that changes in GDP growth have the most obvious impact on the sustainable development of China’s aircraft leasing industry. Reducing the average financing cost and the income tax rate of aircraft leasing companies, increasing their investment in talent, and controlling risk will increase the market share of China’s aircraft leasing companies and promote the development of the industry. However, increasing the number of aircraft leasing companies has little effect on market share. On this basis, this paper proposes policy recommendations to promote the sustainable development of China’s aircraft leasing industry.

Highlights

Leasing is one of the most vibrant and dynamic industries in the world
We find that among the factors affecting the sustainable development of China’s aircraft leasing industry, the change in GDP growth has a significant impact on the growth of the industry
We simulated the impact of key variables from the ecomarket, enterprise, and environmental subsystems, established a ranking of the key nomic, market, environmental subsystems, established a ranking of variables that enterprise, promote theand sustainable development of the aircraft leasing industry to theprovide key variables promote the sustainable development of the leasing induseffectivethat support for policy-making

Summary

Introduction

Leasing is one of the most vibrant and dynamic industries in the world. From an economic perspective, leasing can be defined as “a contract between two parties where one party (the lessor) provides an asset for usage to another party (the lessee) for a specified period of time, in return for specified payments” [1]. The aircraft leasing industry is closely related to the aviation manufacturing, aviation transportation, and financial industries It involves civil aircraft manufacturers, aircraft leasing demand subjects, supply subjects, regulatory subjects, trading markets, institutional environments, and other elements. The sustainable development of the aircraft leasing industry is an organically unified change process of the quantitative growth and qualitative development of the core elements of aircraft leasing [4] In this process, the capabilities of civil aircraft manufacturing companies continue to improve. It has led to these companies seeking to have their payments deferred until air travel demand returns to normalcy Their orders for leasing aircraft have either been canceled or postponed [7]

Objectives

Findings

Discussion

Conclusion