Introduction to Aircraft Leasing and Financing

Participants will also learn principles of aircraft leasing versus ownership, airline credit analysis and sources of capital and financial instruments that airlines and leasing companies use in aircraft funding.

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

• Compare and contrast aircraft selection strategies from an airline and leasing company’s perspective
• Interpret unique rules and regulations that govern aircraft financing and leasing industry
• Justify leasing decisions from lessee and lessor’s perspective
• Differentiate quantitative and qualitative approach to airline credit analysis
• Compare and contrast sources of capital for aircraft funding for airlines and leasing companies

• Overview of Aircraft Leasing
  – Introduction to the commercial aircraft leasing industry
  – Growth of the leasing industry and current state of the leasing industry
  – Major lessors in the market
  – Different types of leases
• Aircraft Selection Strategy Basics
  – Commercial aircraft terminology and concepts of how technical, operational, and economic factors affect the aircraft selection process
  – Crucial factors that influence the lessor, lessee, and manufacturer in the aircraft selection process
• Principles of Aircraft Leasing vs Ownership
  – Analyze a lease from a lessee and lessor’s point of view to arrive at mutually beneficial lease decisions
• Aviation Legal and Regulatory Framework
  – Legal and regulatory issues specific to aircraft financing
  – Specific topics include applicable governing law, conventions and treaties, registration and ownership, recordation of interest in aircraft; liens, regulatory considerations; taxation and deal structuring; jurisdictions; and lessor and operator liability
• Aircraft Funding & Airline Credit – Debt, Equity & the Capital Markets
  – Describe the current aircraft financing environment and its outlook
  – Contrast, historically anticipated funding sources for aircraft financing
  – Assess the development of capital markets for aircraft financing
  – Evaluate trends in aircraft financing for lessors and airlines
  – Formulate a need for a lessor to assess airline credit risk
  – Explain the analytical framework of credit risk assessment
  – Quantitative and qualitative approach to airline credit

Book:
Aircraft Leasing and Financing: Tools for Success in International Aircraft Acquisition and Management. 2nd Edition, Elsevier Publications, 2024.

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.