Aviation Finance and Insurance (Theory)

Paper Code: 
24DBTM506A
Credits: 
04
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to get an insight into financial and insurance aspects of the aviation industry.

 

Course Outcomes: 

Course

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

Course Code

Course Title

24DBTM 506A

Aviation Finance and Insurance  (Theory)

 

 

 

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

 

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

 

12.00
Unit I: 

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

 

12.00
Unit II: 

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

 

12.00
Unit III: 

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

 

12.00
Unit IV: 

Principles of Insurance & Risk Management :

· History of Aviation insurance – Basic Principles of Insurance – Basic Terminologies in General Insurance.

· Insurers – Risk & Insurance – Risk Management

 

12.00
Unit V: 

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: 

 

 

Essential Readings:

1.Vitaly S. Guzhva (Author), Sunder Raghavan (Author), Damon J. D’Agostino (Author), Aircraft Leasing and Financing: Tools for Success in International Aircraft Acquisition and Management.

 

References: 

 

Suggested Readings:

1.Bijan Vasigh, Reza Taleghani, Darryl Jenkins Aircraft Finance: Strategies for Managing Capital Costs in a Turbulent Industry

 

E-Resources:

  1. https://epgp.inflibnet.ac.in/Home/ViewSubject?catid=Cdnwi2LUCCLzrJZ76d/o...

 

Academic Year: