Airline Financial Management

Airline Finance

This course is designed to provide managers with a solid understanding of the financial analysis and modeling techniques to solve problems faced by the airlines. Through case studies and class discussions you will gain the knowledge to view your company from a financial perspective, and be taught accounting terms and concepts to help you manage financial matters with confidence.

Introduction

  • Airline Economics
  • Traffic growth
  • World Airline Financial Results
  • Airline Bankruptcies and Restructuring

Airline Financial Management

  • Business Organization
  • Role of Financial managers
  • Financial Management

Financial Analysis

  • Financial Statements
  • Purpose of Financial Statement Analysis
  • Common-size Income Statements
  • Intangible assets and Goodwill
  • Depreciation

Financial Performance

  • Financial Ratios
  • Altman’s Insolvency Formula

Time Value of Money

  • Simple vs Compounding Interest
  • Present Value and Future value
  • Annuity
  • Perpetuity
  • Amortization

Fuel Hedging

  • Introduction, definition, and terminologies
  • Motivations for hedging, should an airline hedge?
  • Financial derivatives
    • Forward
    • Futures
    • Options
    • Swap