Aviation Finance (FIND)

Courses

FIND 516  Financial Accounting  3 Credits (3,0)

This course is a study of financial accounting concepts, standards, and financial reports used for external reporting by an enterprise. The course will examine accounting concepts, the accounting model, measurement and disclosure of economic transactions, preparation of financial statements, financial statement analysis, the accounting cycle, property, plant, and equipment, depreciation methods, inventory, short- and long-term liabilities, stockholders' equity transactions, inter-corporate investments, and off-balancing financing with an emphasis on aviation and aerospace related businesses. Prerequisite: A Financial Accounting course completed, or prerequisite knowledge met with approval of Program Coordinator and Instructor.

FIND 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: MBAA 518.

FIND 618  Advanced Corporate Finance  3 Credits (3,0)

Airlines, airports, and manufacturers are complex, capital-intensive enterprises operating in 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: MBAA 518.

FIND 619  Economic Modeling  3 Credits (3,0)

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 analyst carrying out econometric analysis on airline economic and/or financial data. Students will use statistical software such as SPSS/ EVIEWS/ LIMDEP/ R to do computational studies with economic data. In this course students are expected to utilize a systematic and careful reasoning to solve managerial problems.

FIND 620  Air Transport Economic Modeling  3 Credits (3,0)

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: MBAA 523 and FIND 619.

FIND 695A  Topics in Aircraft Finance I  2 Credits (2,0)

This course is the first of the three required courses for the ISTAT University diploma in aircraft financing. This course introduces students to aircraft selection strategy basics from an airline and leasing company?s perspective, including important considerations of mission capability, availability, economics, and availability of financing. In addition, the course provides a detailed review ofaviation legal and regulatory framework and discusses applicable governing laws, conventions and treaties, lessor and operator liability, and aviation insurance. Students will also learn principles of aircraft leasing versus ownership, including pros and cons of aircraft ownership, types of leases,lessor and lessee relationship and obligation, and lease accounting. Prerequisites: MBAA 518 or equivalent or permission of instructor.

FIND 695B  Topics in Aircraft Finance II  2 Credits (2,0)

This course is the second of the three required courses for the ISTAT University diploma in aircraft financing. This course introduces students to airline credit analysis and provides them with tools and techniques to conduct quantitative and qualitative credit analysis of domestic and international airlines. Student will also learn sources of capital and financial instruments that airlines and leasing companies use in aircraft funding. In addition, the course provides a detailed review of the fleet portfolio management and risk management that leasing companies employ to reduce their exposure to aircraft residual values, foreign exchange, interest rate, and other risks. Prerequisite: FIND 695A or permission of the instructor.

FIND 695C  Topics in Aircraft Finance III  2 Credits (2,0)

This course is the last of the three required courses for the ISTAT University diploma in aircraft financing. This course provides an in depth review of the principals of maintenance reserve, maintenance reserve economics and rate setting and maintenance reserve management, transactionmodeling for aircraft returns (includes advanced excel simulations) and lease negotiations between the lessor and the lessee Students will also 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 from them. Prerequisite: FIND 695B or permission of the instructor.