Aircraft Life Cycle Cost (LCC) and Corporate Jet Leasing

The second module provides an overview of the corporate/business jet leasing market, types of lease structures, stakeholders, and a discussion of major companies involved in corporate jet leasing, fractional ownership, and jet-card programs.

The course emphasizes practical applications in civil and defense aviation, including budgeting and sustainment strategies.

By the end of this course, participants will be able to:

• Define and apply Life Cycle Cost (LCC) principles across all aircraft phases
• Differentiate between direct and indirect costs for fixed and rotary-wing aircraft
• Use aircraft cost databases (e.g., Conklin & de Decker, JetNet, Jane’s) for comparative analyses
• Evaluate defense budgeting frameworks such as the PPBE system and their implications for LCC
• Describe and differentiate the primary lease structures used in business aviation and helicopter operations
• Build a lease-pricing model for corporate jets and rotary assets, incorporating key financial and operational assumptions

• Aircraft Life Cycle Costing
  – Definition, purpose, and scope of LCC, stages of aircraft life cycle, differences between fixed-wing and rotary-wing cost profiles, cost elements and classifications (acquisition, operating, maintenance, and disposal costs, direct vs. indirect costs, overhead and infrastructure costs)
  – Cost and data sources and databases (Conklin & de Decker and JetNet, Jane’s AeroEngines and IHS Markit, DoD CARD and AFTOC databases, FAA/EASA data for civil operators)
• Corporate Jet Leasing
  – Market Overview & Business Models (Corporate jet and helicopter leasing market landscape, Business models and demand cycles, key industry trends and growth drivers)
  – Lease Types, Legal Frameworks & Registration (operating vs. finance leases, wet/dry, ACMI, fractional ownership, Aircraft registration and export considerations, core lease contract provisions)
  – Discussion of Major Fractional / Business Aviation Operators (NetJets, Flexjet, VistaJet, Wheels Up, Air Partner, Sentient Jet, Jet Aviation, XO (formerly XOJET), FlyExclusive)

Dr. Raghavan has published in various leading journals such as Electronic Commerce, Journal of Air Transportation Management, Transportation Research Record, and Journal of International Finance and Economics and is a co-author of the leading textbook on Aircraft Leasing and Financing Tools for Success in International Aircraft Acquisition and Management. The Wall Street Journal and NASA have referenced his work.

Dr. Raghavan has served as a consultant to the Reserve Bank of India (India’s Central Bank) and published a report on the corporate bond market developments in India. He has served as an external thesis examiner for doctoral dissertations in Finance and reviewed textbooks in Finance.Dr. Raghavan is an Accredited Senior Appraiser (ASA) with a Machinery and Technical Specialties/Aircraft designation and an ISTAT Appraiser candidate. He has been a guest speaker at the University College of Dublin (UCD), Ireland and a Visiting Professor in Italy, China, Germany, Estonia and Bahrain and has offered professional short courses on Aircraft Leasing and Financing.