Aircraft Financing for Non Financiers

Improve understanding of airline financial performance & aircraft financing tools & techniques from the perspectives of airlines, lessors, bankers & manufacturers.

How will I benefit?

This course will enable you to:

• Understand the role of finance and insurance in aviation
• Know the main aviation finance and insurance jargon used
• Understand airline financial performance and statements
• Analyse the financing structures used in today's aircraft market
• Appreciate the objectives of airlines, lessors, bankers, insurers and manufacturers
• Understand the role of leasing markets, manufacturer support and export credit
• Understand aviation insurance market, its financial impacts on airlines and aircraft financing
• Analyse recent trends on aircraft transactions from a financial perspective
• Comprehend the role of capital markets in aircraft finance and the current market situation

What does the course cover?

• Aviation business drivers and financial impacts
• Overview of aircraft financing process and players
• Financing jargon
• Airline financial statements and analysis
• Capital markets, currency exchange and aircraft financing
• Leasing awareness overview
• Financing structures for aircraft
• Aircraft loan structures and pricing

The banker’s view:

• Bank’s objectives and criteria when financing a deal
• Balance sheet and regulatory constraints on banks
• Document and cash flows in financing structures

Problems and trends in air finance and aircraft finance businesses

Latest aircraft financing structures

Insurer’s view:

• Insurer’s objectives and criteria when financing a deal
• Overview of the insurance market
• Types of insurance and pricing
• Case study: Insurance and airline financial implications
• Aircraft residual value guarantees
• Export credit agencies’ role and mechanisms in aircraft financing

Manufacturer’s view:

• Financing overview of the evolution of orders and deliveries
• Aircraft financing and government support (Export Credit Agencies - ECA)
• ECA financing trends
• PDPs financing overview
• Backstop financing

Airline’s view on:

• Financing strategy and flexible fleet management
• Cost of capital optimisation
• Financial risk management
• Airline’s financing tools during a crisis
• Aircraft financing