Aircraft Leasing

aviation-lease-management

This course is intended to meet the needs of current and future air transport managers who need to understand and use financial information to maximize their firm’s value. A central focus of the course is application of theory to practice in the airline industry. The course provides comprehensive financial statement analysis for decision-making purposes, aircraft leasing, lease vs buy decisions, and capital budgeting.

Introduction

  • Overview of the Airline Industry
  • Why the Airline Industry is not Profitable
  • The Basics of Depreciation
  • Volatility of Passenger Demand
  • Lease Agreement

Aircraft Financing

  • Residual Value
  • Financing Options for Commercial Airlines
  • Why Airlines Lease Aircraft
  • Types of Aircraft Leasing
  • Models of Lease Transactions

Financing Options

  • Equity Financing
  • Debt Financing
  • Weighted Average Cost of Capital (WACC)
  • Asset-backed Securities
  • Aircraft Lease Securitization
  • Equipment Trust Certificate (ETC)
  • Enhanced Equipment Trust Certificate (ETC)

Aircraft Financing

  • Advantages and Disadvantages of Leasing
  • Financing Options for Commercial Airlines
  • Why Airlines Lease Aircraft
  • Types of Aircraft Leasing

Risk Management

  • Cross Boarder Leasing
  • Aircraft Registration
  • Repossession