Impact Of Aircraft Sourcing Financing On Financial Success

Airlines follow different strategies of aircraft sourcing and financing. Basic decisions include the choice of buy versus lease and long term versus short term acquisition of aircraft. Additional fleet and fleet planning characteristics include the desired fleet size, average aircraft age, or possible surplus in capacity. Do these variables have an impact on financial success? Taking the perspective of a shareholder, the author uses multivariate regression methodology to evaluate abnormal returns in stock market's reaction to the terrorist attacks on September 11, 2001, the Financial Crisis 2008, and to aircraft accidents and aircraft orders 1994–2009. In further regression analyses the relationship of fleet variables to a company's revenue growth and profitability is examined. Potential readerships include researchers and practitioners with interest in how decisions could be taken in favor of shareholders in an aircraft fleet planning context.

Aircraft Financing and Leasing: Tools for Success in Aircraft Acquisition and Management, Second Edition provides students and industry professionals with unique insights into the latest developments in the Commercial Aircraft and Engine Leasing and Financing industry that has grown into one of the most distinctive and important industries globally. This book offers a blend of academic and professional views that make it educational and relevant to the everyday operations of the industry. It can be used as a stand-alone textbook as well as a practitioner's guide. Given the impact of the COVID-19 virus on airlines around the world, the industry has experienced substantial changes since the first edition was published. This second edition is thoroughly revised and includes some new case studies and an entirely new chapter on Environmental Considerations with Respect to Aviation Finance. Aircraft Financing and Leasing details the industry’s foundational concepts, including aviation law and regulation, airline credit analysis, maintenance reserve development, insurance, transaction cost modeling, risk management tools such as asset and credit diversification, and the art of lease negotiations. Different types of aircraft are explored, highlighting their purposes, as well as when and why airline operators and investors choose specific models over others. In addition, the book covers important factors such as modeling financial returns for leased aircraft and appraising aircraft values. Users will find this an ideal resource for practitioners or as an outstanding reference for senior undergraduate and graduate students. Includes a new chapter on Environmental Considerations with Respect to Aviation Finance as well as updates throughout to reflect changes in the industry, particularly due to COVID-19 Utilizes case studies in each chapter—real-life examples that will help the readers apply newly learned concepts to real problems of the industry Highly illustrated with text boxes for examples and real-world applications; graphs, charts, tables, diagrams, flow charts, photos, maps; and examples of forms Offers a blend of academic and professional views, making it suitable for both student and practitioner Serves as an aircraft finance and leasing reference for those starting their careers, as well as for legal, investment, and other professionals

There are few industries that have had a more profound impact on business and society over the last century than aviation. This book is an accessible, up-to-date introduction to the current state of the aviation industry which provides readers with the tools necessary to understand the volatile and often complicated nature of airline finance. Understanding finance is critical in any industry; however, the financial track record of the airline industry places even more importance on effective financial management. Foundations of Airline Finance provides an introduction to the basics of finance – including time value of money, the valuation of assets, and revenue management – and the particular intricacies of airline finance where there can be wild fluctuations in both revenues and costs. The third edition of this text has been extensively updated to reflect the many changes in the air transport industry that have taken place since the publication of the second edition, and features an expanded chapter on aircraft leasing and many new international case examples. This thorough introduction to aviation finance is valuable reading as a general, introductory financial text, or as reading in specialized airline finance classes.

Aircraft Financing and Leasing: Tools for Success in Aircraft Acquisition and Management, Second Edition provides students and industry professionals with unique insights into the latest developments in the Commercial Aircraft and Engine Leasing and Financing industry that has grown into one of the most distinctive and important industries globally. This book offers a blend of academic and professional views that make it educational and relevant to the everyday operations of the industry. It can be used as a stand-alone textbook as well as a practitioner's guide. Given the impact of the COVID-19 virus on airlines around the world, the industry has experienced substantial changes since the first edition was published. This second edition is thoroughly revised and includes some new case studies and an entirely new chapter on Environmental Considerations with Respect to Aviation Finance. Aircraft Financing and Leasing details the industry's foundational concepts, including aviation law and regulation, airline credit analysis, maintenance reserve development, insurance, transaction cost modeling, risk management tools such as asset and credit diversification, and the art of lease negotiations. Different types of aircraft are explored, highlighting their purposes, as well as when and why airline operators and investors choose specific models over others. In addition, the book covers important factors such as modeling financial returns for leased aircraft and appraising aircraft values. Users will find this an ideal resource for practitioners or as an outstanding reference for senior undergraduate and graduate students.

In recent years the airline industry has experienced severe volatility in earnings, with airlines recording periods of substantial profits that are closely followed by periods of financial distress. This trend has continued into the new millennium, with numerous examples of airlines across the globe entering bankruptcy protection or liquidating. The text provides an introduction to both the basics of finance and the particular intricacies of airline finance where there can be significant fluctuations in both revenues and costs. This new edition also includes: capital budgeting management of current assets financial risk analysis fuel hedging aircraft leasing This textbook contains chapters that cover unique aspects of the aviation financial decision-making process. These include a rigorous and structured presentation of the buy versus lease decision that is prevalent in the industry, a valuation process for aviation assets, the recent trend toward privatization and the difficulty inherent in the valuation of a publicly-owned or semi-publicly owned asset. The Foundations of Airline Finance, now in its second edition, is an introductory text that can be used either as a general financial text or in a specialized class that deals with aviation finance in particular.

This book constitutes revised selected papers from the 9th international Global Sourcing Workshop 2015, held in La Thuile, Italy, in February 2015. The 14 contributions included were carefully reviewed and selected from 40 submissions. The book offers a review of the key topics in outsourcing and offshoring, populated with practical frameworks that serve as a tool kit to students and managers. The range of topics covered is wide and diverse, but predominately focused on how to achieve success and innovation in global sourcing. The topics discussed combine theoretical and practical insights regarding challenges that industry leaders, policy makers, and professionals face. Case studies from various organizations, industries and countries are used extensively throughout the book to illustrate results and findings.

This title was first published in 2002: The purpose of this book is to provide, as far as possible, a broad understanding of all areas of airline finance. It is intended to be suitable for both those in the industry without any financial background and newcomers to the industry who may have some knowledge of finance.

This book provides indispensable knowledge for practitioners in aircraft financing. It presents an innovative framework that treats valuation analysis as a systematic effort in problem-solving directed at rational financial decision-making. It incorporates much of the modern approach to financial investment decision-making. It proposes essential tools of flexibility, adaptability, and commonality of aircraft financial analyses that apply to an almost infinite variety of valuation problem situations. Once these connections have been introduced, the reader will be equipped with an understanding of the underlying concepts of aircraft valuation processes and techniques and the subsequent financing alternatives available to fund aircraft assets. This is an essential book for airline professionals, aircraft leasing companies, consultants, bankers, government officials, and students of aircraft finance. It is an approachable resource for those without a formal background in finance.