• The air transport industry is a capital, labor and technology-intensive industry. It has high returns and a strong industrial platform effect. It is also accompanied by high entry barriers, strong professionalism, large investment, and long payback period. This characteristic As a result, it faces greater risks than other industries. These risks mainly include:
• Systemic Risk: Risk manifested by changes in the political, economic and legal environment;
• Operational Risk: uncertainty brought to an enterprise’s profits due to operational reasons. Influencing factors mainly include demand, freight rates, variable costs (such as oil prices) and fixed costs (such as aircraft leasing and depreciation), etc.;
• Safety Risks: risks to the operational safety of aircraft and major production equipment, employees’ working environment and physical and mental safety;
• Financial Risk: the risk faced by funds in raising, financing, investment and other activities in production and operation;
• Economy Risk: refers to the uncertainty caused by changes in financial conditions to a company’s future earnings.