Aviation Finance (FIN)


FIN 518  Managerial Finance  3 Credits (3,0)

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 (3,0)

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 institutional investors, the concept of efficient markets, equity and bond portfolio management, and portfolio performance evaluation. Case studies from the airline and aerospace industries; Web-based investment simulation; and current economic and capital market information.
Prerequisites: FIN 518 or MBAA 518

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

Complex financial structures and advanced financial tools employed in the aviation industry. Concepts covered include project finance, leasing, mergers, financial distress, financial derivatives (real options, interest rate swaps, fuel and currency hedging, forward contracts and futures), airport finance and financial modeling using simulation and optimization techniques.
Prerequisites: FIN 518

FIN 620  Air Transport Econometric Modeling  3 Credits (3,0)

Critical mathematical and statistical techniques used to construct and test econometric models, and provide solutions. Development of analytical reasoning in creating and testing hypotheses utilizing fundamentals of probability and statistics. Univariate and multivariate models; least squares estimates; sample inferences for population parameters; evaluation through hypothesis testing. Emphasis on appropriate tools to make the right decision; econometric analysis using statistical software such as R studio/SAS/STATA or Eviews.
Prerequisites: BA 523

FIN 621  International Aviation Finance  3 Credits (3,0)

Advanced financial concepts in the aviation industry within international setting. Complex financial structures; 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.
Prerequisites: FIN 518

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

In-depth review of aircraft selection strategies, the legal and regulatory framework surrounding aviation, aircraft funding sources, and risk management. 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 guarantees; 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); the structure of a lease document; the structure of a loan facility document; and risk management and insurance.
Prerequisites: FIN 518

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

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. Advanced Excel skills (calculation of IRRs, Multiples, NPV analysis, return of capital, pay back periods, lease earnings) used to stress 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

Individual independent or directed studies of selected topics.

FIN 720  Advanced Managerial Finance in Aviation  3 Credits (3,0)

This course is an advanced study of the theoretical and practical approaches to effective financial management in aviation. Airlines, airports, and airspace manufacturers are complex and capital-intensive enterprises that operate in volatile global markets. Financial managers in the industry use a variety of methods and financial instruments to raise necessary capital and to manage financial risks, as well as plan, analyze and control investments. This course emphasizes the application of advanced methods and techniques in financial decision making in aviation business settings. Topics include capital budgeting and financing, risk and diversification, asset and liability management, asset valuation, derivatives and hedging, project finance, and international financial management.