Aviation Finance

This 1-day course provides the participants with a comprehensive overview of the finance related topics of the airline industry including financial performance, methodologies, structuring of deals and strategies.

Case studies & examples are included to enhance the learning curve and broaden the understanding of the concepts discussed. The course is suitable for bankers, lawyers, legal counsel and financial advisers.

Airline Strategy

• Strategy for airlines
• Business model
• Why have the business models been changing- the model of the future

Operating Performance Drivers & Cost structures

• Overview of the airline specific KPI’s
• Demand:
  - Functions of demand
  - Consumer choice
  - Elasticity of demand
• Traffic
• Segmenting demand
• The drivers of traffic
• Airline cost classification
• Cost drivers

 Fleet & Revenue Management

• Quantity based approach – capacity allocation
• Price-based approach
• Managing freight revenues
• Instability of airline tariffs
• Alternative pricing policies
• Structure of passenger fares
• Relating passenger tariffs to costs
• Airline passenger yields

Airline Financial Ratios

• Earnings ratios
• Efficiency ratios
• Asset ratios
• Risk or solvency ratios
• Liquidity ratios
• Du Pont model
• Inter-airline comparison of financial ratios
• Interpreting the results

Case Study

 Airline Valuation

• The valuation approach
• Cost of capital
• The valuation principles specific to the airline industry
• Valuation of an airline

Case Study

Sources of Finance

• Internal finance versus external finance
• The players in aircraft finance
• Government and central bank involvement

Risk Management

• Foreign currency and exchange rate volatility
• Airline trading exposure to currency movements
• Airline foreign exchange risk management
• Fuel prices
• Fuel price exposure

Aircraft Leasing

• Finance lease
• Operating lease
• Japanese operating lease (JOL) and wet lease
• Sale and leaseback – good or bad?
• Lease versus buy decision

Solicitors Regulation Authority (SRA) CPD Hours: 6

Delivering this course in-house for you to a number of participants could be very cost effective. Please contact us to learn more.

Training Courses in Banking and Corporate Finance

Redcliffe is a banking and corporate finance training company which specialises in the delivery of bespoke courses to the financial community. It is run by the trainers themselves, all of whom have many years of practical experience at senior levels.

Our programmes are delivered both on an open basis in the City of London and also on an in-house basis for investment banks, stockbrokers, corporate financial advisers, accountants, lawyers and corporates. Redcliffe has a very prestigious client base and during the past two years it has delivered in-house seminars to many leading financial institutions and professional advisers. During 2007 and 2008 almost 3,500 executives attended Redcliffe's open courses. In 2009 Redcliffe will also present some of its courses in Manchester.

The topics that we cover include all areas of corporate finance (including mergers and acquisitions, buy-outs, debt finance, restructuring, valuation, modelling and regulation), banking (including treasury products, risk management and trade finance), project finance (including PPP / PFI), accounts topics, tax and property (including REITS and sale and leaseback).

Details of over 130 courses which Redcliffe can present can be found under Courses and Dates on our website. Most of these are presented on a public basis and all of them may be presented in-house to the client's specification.