This course will enable the students to get an insight into financial and insurance aspects of the aviation industry.
Course |
Learning outcomes (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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Course Code |
Course Title |
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24DBTM 506A |
Aviation Finance and Insurance (Theory)
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CO211: Analyze the Airline finance CO212: Describe the Airline Valuations & Source of finance. CO213: Analyze the Aircraft Leasing & Finance procedures. CO214: Describe the Principles of Insurance & Risk Management. CO215: Describe the concept of Aviation Insurance. CO216: Contribute effectively in course-specific interaction
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Approach in teaching: Interactive sessions, Discussion, Tutorials, Reading assignments, Demonstration, Team teaching
Learning activities for the students: Self-learning assignments, Effective questions, Simulation, Seminar presentation, Giving tasks. |
Continuous Assessment Test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects |
Airline finance – Introduction :
· Airline Finance
· Need & Importance – World Airline financial results
· Factors affecting financial results – Asset Utilization – Key Financial issues
· Airline financial ratio – Performance Earnings Ratio – Risk solvency ratio
· Liquidity Ratio – Stock Market Ratios – inter – Airline comparison of financial ratio
Airline Valuations & Source of finance :
· The valuation of tangible and intangible assets – The valuation of the Airline as a whole
· Rating agencies – Sources of internal and external finance – Institutions involved in Airline Finance
· Term Loan payment, book profit and manufacturer‘s prepayment
Aircraft Leasing & Finance :
· Finance Lease – Meaning, Objectives, Different type of leasing, major differences between Wet, Sale and Operating lease.
· Securitization of Aircraft – Meaning, Purpose and advantages, Airline traffic and Financial forecasts
· Airline capital expenditure projections and airline financial requirement forecasts
Principles of Insurance & Risk Management :
· History of Aviation insurance – Basic Principles of Insurance – Basic Terminologies in General Insurance.
· Insurers – Risk & Insurance – Risk Management
Aviation Insurance :
· Aircraft hull and liability insurance – Sample policy and endorsement – Airport premise liability and other aviation coverage.
· Underwriting and pricing aviation risk – Aviation business property insurance and transport insurance.
Essential Readings:
Suggested Readings:
E-Resources: