Dates                                                                                
                                                                                                                            
                                                                                                           
12 November 2010
13 May 2011
18 November 2011              

 Course Overview

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.

Course Content

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

IN ADDITION TO THE PUBLIC DATES ABOVE, THIS COURSE CAN ALSO BE TAILORED TO YOUR REQUIREMENTS AND DELIVERED IN-HOUSE FOR YOU.

PLEASE CIRCULATE THIS PDF AMONG YOUR COLLEAGUES!


IF YOU HAVE ANY QUESTIONS ABOUT THIS SEMINAR PLEASE WRITE TO US AT post@redcliffetraining.co.uk

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