May 13, 2021
AVM 338 - Airport Administration and Finance
The role of airport and airline in the aviation industry, including time value of money, risk and return, complex nature of costs (fixed, semi-fixed, variable and marginal). Analysis of financial statements as they apply to the overall financial health and revenue stream of an aviation organization such as an airport or airline.
Prerequisite: AVM 334.
Upon successful completion of this course, the student will be able to:
Learner Outcomes Approval Date:
- Demonstrate the ability to recognize and identify:
- The basic theory and foundations of Airport and Airline Finance including methodology and practice.
- Identify the following including:
- The elementary and theoretical foundations that underpin the role of finance in the airline industry such as the time value of money, the notion of risk and return, and the complex nature of costs (fixed, semi-fixed, variable, and marginal).
- Compare and contrast issues in ratio analysis including:
- An in-depth analysis of the role of accounting in airlines which includes the study of ratio analysis is used to further analyze airline financial statements
- Analyze more advanced issues in finance as it applies to the aviation industry and aircraft including:
- Compare and contrast practical applications of the theoretical ideas presented earlier; these applications include hedging, the buy versus lease decision for aircraft and the question of the valuation of assets (mainly aircraft).
- Compare and contrast finance in terms of measurable criteria including:
- Calculate airline industry specific metrics, such as cost per available seat mile (CASM) and revenue per revenue passenger mile (RRPM).
- Evaluate and analyze the role of capital and asset management including:
- Real world application of the financial theories learned as they apply to a case study of an airline company.
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