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