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

Author

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  • Weiwei Lin

    (College of Civil Aviation, Nanjing University of Aeronautics and Astronautics, 29 Jiangjun Avenue, Jiangning District, Nanjing 211106, China)

  • Jing Lu

    (College of Civil Aviation, Nanjing University of Aeronautics and Astronautics, 29 Jiangjun Avenue, Jiangning District, Nanjing 211106, China)

  • Jinfu Zhu

    (College of Civil Aviation, Nanjing University of Aeronautics and Astronautics, 29 Jiangjun Avenue, Jiangning District, Nanjing 211106, China)

  • Li Xu

    (College of Civil Aviation, Nanjing University of Aeronautics and Astronautics, 29 Jiangjun Avenue, Jiangning District, Nanjing 211106, China)

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.

Suggested Citation

  • Weiwei Lin & Jing Lu & Jinfu Zhu & Li Xu, 2022. "Research on the Sustainable Development and Dynamic Capabilities of China’s Aircraft Leasing Industry Based on System Dynamics Theory," Sustainability, MDPI, vol. 14(3), pages 1-19, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:3:p:1806-:d:742468
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    References listed on IDEAS

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    Cited by:

    1. Xiao Han & Yang Zheng, 2022. "Driving Elements of Enterprise Digital Transformation Based on the Perspective of Dynamic Evolution," Sustainability, MDPI, vol. 14(16), pages 1-19, August.

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