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Aviation Finance (FIN)

Courses

FIN 518  Managerial Finance  3 Credits

A study of the theoretical and practical approaches to effective financial management. Planning, analyzing, and controlling investment, and short- and long-term financing are examined for decision-making purposes. Emphasis is placed on the application of these methods in the aviation and aviation-related industries. Topics include capital budgeting, risk and diversification, asset liability management, airport financing, aircraft financing, financial derivatives, financial engineering, swaps, options, financial future, and international finance.

FIN 615  Investments  3 Credits

This course provides a survey of investments including security markets, investment vehicles, investment analysis, and portfolio management. Specific topics include the concept of risk and return, types of financial instruments, security valuation, mechanics of trading, the survey of investment companies, asset allocation for individual and an institutional investors, the concept of efficient markets, equity and bond portfolio management, and portfolio performance evaluation. The course is taught from the viewpoint of both an individual and institutional investor. The course uses case studies from the airline and aerospace industries, Web-based investment simulation, and current economic and capital market information to provide practical application of the course materials.
Prerequisites: BA 518.

FIN 618  Advanced Corporate Finance  3 Credits

Airlines, airports, and manufacturers are complex, capital-intensive enterprises operating volatile, international markets. Consequently, participants in the industry rely on a variety of financial instruments to raise necessary capital and to manage financial risk arising from uncertain demand and supply markets. While building on the finance concepts developed in Managerial Finance, this course examines the complicated financial structures and advanced financial tools employed in the aviation industry. Concepts covered include project finance, financial derivatives (real options, interest rate swaps and hedges, forward contracts and futures), financial modeling using simulation and optimization techniques, and international financial management (foreign exchange exposure management, foreign investment and capital allocation, multinational cash and tax management). The course relies on current articles and cases to explore the application of advanced financial concepts to the aviation industry.
Prerequisites: FIN 518.

FIN 620  Air Transport Economic Modeling  3 Credits

This course introduces students to several important advanced mathematical and statistical techniques that are used to build and test econometric models, and provide solutions addressed by the institution. Emphasis will be placed on developing an understanding of the essentials underlying various methods and the ability to relate the methods to important issues faced by an analyst carrying out econometric analysis on airline economic and/or financial data. That is, how to choose the right method and how to make the right decision. Students will learn how to conduct time series analysis using EVIEWS, cross-sectional analysis using SPSS, and panel data analysis using LIMDEP. In this course students are expected to utilize a systematic and careful reasoning to solve managerial problems.
Prerequisites: BA 523.

FIN 621  International Aviation Finance  3 Credits

Airlines, airports, and aircraft manufacturing are complex, capital-intensive enterprises operating in volatile, international markets. Consequently, participants within the industry rely on a variety of financial instruments to raise necessary capital and to manage financial risk arising from uncertain demand and supply markets. While building upon the finance concepts developed in Managerial Finance, this course examines the complicated financial structures and advanced financial tools and financial modeling employed within the aviation industry in an international context. Concepts covered include leasing, cross border mergers, financial distress, foreign exchange exposure management, foreign investment and capital allocation, multi-national cash and tax management. The course relies upon current articles and cases to explore the application of advanced financial concepts to the aviation industry in an international setting.
Prerequisites: BA 518.

FIN 622  Aircraft and Airline Financing  3 Credits

The financial issues facing airlines and the markets available to them are different than those for any other industry. Being in a highly capital intensive and cyclical industry with volatile cash flows, airlines have very special financing requirements. Access to capital is a key concern faced by many airlines. The course provides an in depth review of the airline financing market and tools. Specific topics include: airline credit risk assessment; fleet financing tools (commercial loans, operating and financial leases, tax leases, export credit, securitization, etc.); aircraft valuation, the asset risk, and residual value guaranties; state of the financing market and availability of financing tools; leasing companies (market dynamics, size and depth of market); banking market (major players in aircraft financing, market evolution); legal environment and tax considerations (repossession, bankruptcy law, and jurisdictional tax impact); structure of a lease document; structure of a loan facility document; and risk management and insurance in airlines (what risks are covered, insurance markets, and jurisdictional considerations).
Prerequisites: BA 518.

FIN 623  Aircraft Funding Legal and Financial Analysis  3 Credits (3,0)

The course provides an in depth review of aircraft selection strategies, the legal and regulatory framework surrounding aviation, aircraft funding sources and risk management. Specific topics include: airline credit risk assessment; fleet financing tools (commercial loans, operating and financial leases, tax leases, export credit, securitization, etc.); aircraft valuation, the asset risk, and residual value guaranties; state of the financing market and availability of financing tools; leasing companies (market dynamics, size and depth of market); banking market (major players in aircraft financing, market evolution); legal environment and tax considerations (repossession, bankruptcy law, and jurisdictional tax impact); structure of a lease document; structure of a loan facility document; and risk management and insurance in airlines (what risks are covered, insurance markets, and jurisdictional considerations).
Prerequisites: BA 518.

FIN 624  Aircraft Transaction and Risk Modeling  3 Credits (3,0)

The airline industry is a highly capital intensive and cyclical industry with volatile cash flows. Airlines have very special aircraft financing requirements, access to capital being one of them. This course reviews the principles of maintenance reserve; maintenance reserve economics and rate setting; maintenance reserve management; aircraft portfolio and risk management; residual value management; transaction modeling for aircraft returns using advanced Excel simulations; and lease negotiations between the lessor and the lessee.Students learn advanced Excel skills (calculation of IRRs, Multiples, NPV analysis, return of capital, pay back periods, lease earnings), test the model functionality, and interpret data.
Prerequisites: FIN 623 and FIN 518.

FIN 696  Graduate Internship in Finance  1-3 Credit

Temporary professional or industrial work appointments made available to students enrolled in graduate programs at the University. An internship provides graduate students with an opportunity to extend their academic endeavors through the application of the theories and philosophies studied in the classroom to specific professional activities common to the workplace. They are academic/professional activities coordinated by the University between offering organizations and the graduate student. Prior approval of the graduate program coordinator is required.

FIN 699  Special Topics in Finance  1-6 Credit

The election to perform a special, directed analysis and/or independent study in an area of particular interest. Candidates selecting this elective must prepare a detailed proposal for the desired project and present the proposal to the graduate program chair or department chair for faculty review. Proposals must be submitted at least four weeks prior to the start of the term in which the elective is being taken.