Description
One of the largest assets that an airline has are aircraft, therefore it is critically important to develop a methodology that estimates an aircraft’s value, and which also determines efficient utilization to ensure an acceptable rate of return on the asset. Aircraft Finance provides a comprehensive review of aircraft finance and valuation and presents a detailed methodology for accurately valuations. The methodology measures return on investment, improves the efficiency of managing operating costs and more effectively determines revenue analysis.
About the author(s)
Bijan Vasigh is professor of Economics and Finance in the College of Business at Embry-Riddle Aeronautical University, Daytona Beach Florida. Dr. Vasigh received a Ph.D. degree in Economics from the State University of New York and he has written and published many articles concerning the aviation industry. The articles have been published in numerous academic journals such as the Journal of Economics and Finance, Journal of Transportation Management, National Aeronautics and Space Administration (NASA) Scientific and Technical Aerospace Reports, Transportation Quarterly, Airport Business, Journal of Business and Economics, and Journal of Travel Research. Bijan is also author of North America’s leading aviation textbooks entitled An Introduction to Air Transport Economics: From Theory to Application and The Foundations of Airline Finance: Methodology and Practice.
Reza Taleghani is currently a Managing Director with J.P. Morgan Securities in New York where he has spent the majority of his career as an investment banker to the air transport sector. He also has a deep understanding of the operational aspects of the industry, having recently served as President and CEO of Sterling Airlines, a leading Scandinavian low cost carrier. His expertise in aircraft finance arises from his experience originating and structuring financings of transportation assets in J.P. Morgan’s Securitized Products Group, as well as operating a fleet of jet aircraft at Sterling. During his time at J.P. Morgan, he has also worked on mergers and acquisitions; initial public offerings; secured, unsecured and ECA-backed financing in the syndicated finance and capital markets; leveraged finance; restructuring; and risk management for airline and lessor clients in Europe, the United States and Latin America. Mr. Taleghani holds dual AB degrees in History and Organizational Behavior and Management from Brown University. He received his JD and MBA from Villanova University.
Darryl Jenkins’s aviation experience covers over thirty years. Recent work includes extensive merger and acquisition experience at United Airlines and Delta Air Lines. Previously, he was at GWU for fifteen years and served as director of the Aviation Institute and was the Director of the Graduate Certificate Program in Aviation Management from 2001 to 2003. He was visiting faculty at Embry Riddle Aeronautical University in 2004. As a consultant he has worked for the majority of the world’s top fifty airlines. He is a regular commentator for the major media (ABC, NBC, CBS, Fox, CNN, MSNBC, and CNBC) on aviation issues and is regularly quoted in the print media as well. He is a regular speaker at trade and other conferences and is the author of several books.
Table of Contents
Read the Review by Zane Rowe
Read the Review by Paul Mifsud
About the Authors
Foreword by Kelly Ison
Preface
Prologue by Kenneth Dufour
Chapter 1: The Evolution and Globalization of Commercial Aircraft
Chapter 2: Aircraft Variants and Manufacturing Specifications
Chapter 3: Aircraft Efficiency: Operating and Financial Metrics
Chapter 4: A Methodology for Aircraft Valuation
Chapter 5: Aircraft Valuation and Sensitivity Analysis
Chapter 6: The Principles of Effective Cost Management and Capital Structure
Chapter 7: Aircraft Secured Bond Transactions and Securitization
Chapter 8: General Aviation Aircraft and Appraisal
Chapter 9: Aircraft Leasing and Finance
Chapter 10: Airline Fleet Selection Process
Chapter 11: Export Credit Agencies and Aircraft Finance
Appendix
Glossary
Index
Reviews
“In this insightful book, authors Bijan Vasigh, Reza Taleghani, and Darryl Jenkins bring the financial aspects of this highly capitalized and dynamic industry to life, giving the reader an understanding of the decisions that have led to the current state of aircraft production and airlines that fly them. Aircraft Finance highlights the financial sensitivities that contribute to the volatility that is inherent in the business today and details the challenges and dynamics currently facing this ever-changing industry. The reader will be intrigued by the trade-offs airlines and aircraft manufacturers make and the impact these trade-offs have on the valuation of the aircraft asset and airlines’ fleets and route decisions. The book also provides insights into financing alternatives, as well as the structural ramifications of those decisions.”
—Zane Rowe, Former Executive Vice President and Chief Financial Officer of UAL
“These authors know aviation, the airline industry, and aircraft finance. This book is a comprehensive description of the industry’s entire food chain where readers will be able to understand where money is made and where value is so often destroyed in enormous quantities at so many airlines. It is definitely worth reading!”
—Robert A. Milton, Chairman & C.E.O. Air Canada (Retired)
“The authors show their respect and passion for the industry as they take you from basics to balance sheets in this new standard of aviation finance. This book delivers a comprehensive and logical framework for analyzing and designing the financial underpinnings that will drive smart business decisions.”
—Blair LaCorte, CEO of XOJET
