Module Details

Module Code: MGMT9073
Title: Aviation Leasing Principles
Long Title: Aviation Leasing Principles
NFQ Level: Expert
Valid From: Semester 2 - 2021/22 ( January 2022 )
Duration: 1 Semester
Credits: 5
Field of Study: 3450 - Business & Management
Module Delivered in: 1 programme(s)
Module Description: This module aims to explore the principles behind aviation leasing, its application on a worldwide scale and the importance of the sector to the growing commercial aviation industry. Key aspects of the industry are examined to assess how aviation leasing assists airline growth, sectoral expansion and its importance to aircraft manufacturers and airlines.
 
Learning Outcomes
On successful completion of this module the learner will be able to:
# Learning Outcome Description
LO1 Critically evaluate the principles underpinning the aviation leasing sector.
LO2 Evaluate the various methods of financing available to firms when acquiring aircraft.
LO3 Analyse the risk environment that is present in the leasing sector with focus on pre-agreement risk analysis, insurance and escalation mechanisms.
LO4 Critically evaluate the tools used by lessors to identify assets, value determination and appraisal techniques.
LO5 Review the legal framework surrounding leasing activities with respect to industry protocols.
Dependencies
Module Recommendations

This is prior learning (or a practical skill) that is strongly recommended before enrolment in this module. You may enrol in this module if you have not acquired the recommended learning but you will have considerable difficulty in passing (i.e. achieving the learning outcomes of) the module. While the prior learning is expressed as named MTU module(s) it also allows for learning (in another module or modules) which is equivalent to the learning specified in the named module(s).
Incompatible Modules
These are modules which have learning outcomes that are too similar to the learning outcomes of this module. You may not earn additional credit for the same learning and therefore you may not enrol in this module if you have successfully completed any modules in the incompatible list.
No incompatible modules listed
Co-requisite Modules
No Co-requisite modules listed
Requirements

This is prior learning (or a practical skill) that is mandatory before enrolment in this module is allowed. You may not enrol on this module if you have not acquired the learning specified in this section.
No requirements listed
 
Indicative Content
Aircraft Leasing Concept Overview
Overview of the workflow, LOI/SD, Aircraft Delivery Process, Deal Considerations (Commercial/tax/pricing), Lease Management during the lease term
Aviation Financing
Investment Tools, Consideration of capital and debt instruments from a lessor perspective when leasing aircraft, Significance of Rental/Maintenance/Late Interest billings during the lease term
Risk Management
Exploration of the various risks associated with airlines pre and during lease term along with linkage to various provisions which are typically listed with the lease agreements, Credit Scoring Mechanisms used by lessors, Escalation mechanisms used to remedy discrepancies
Portfolio Management
Tools used by lessors to identify core assets for these portfolio base, Exploration of value add for these assets, Exploration of annual appraisal techniques
Asset Management
Summary of the ABS concept (Asset Based Securitization), Concept of Waterfalls, Rating agencies, Investor Tranches, Relevant parties privy to this structure
Legal Framework & Aircraft Trading
High level overview of various legal provisions and frameworks associated with the industry (Capetown/IDERAs), Concept of contract law
Module Content & Assessment
Assessment Breakdown%
Coursework100.00%

Assessments

Coursework
Assessment Type Written Report % of Total Mark 50
Timing Week 6 Learning Outcomes 1,2
Assessment Description
Report exploring the principles surrounding aviation leasing in form of guidance to emerging airline.
Assessment Type Project % of Total Mark 50
Timing Week 13 Learning Outcomes 3,4,5
Assessment Description
Project exploring the industry specific practices used to facilitate lease agreements.
No End of Module Formal Examination
Reassessment Requirement
Coursework Only
This module is reassessed solely on the basis of re-submitted coursework. There is no repeat written examination.

The University reserves the right to alter the nature and timings of assessment

 

Module Workload

Workload: Full Time
Workload Type Contact Type Workload Description Frequency Average Weekly Learner Workload Hours
Independent & Directed Learning (Non-contact) Non Contact Directed activities to support classroom delivery, study, research and reading. Every Week 5.00 5
Lecture Contact Lectures on Aviation Business Models (including from guest lecturers), class discussion and case study review. Every Week 2.00 2
Total Hours 7.00
Total Weekly Learner Workload 7.00
Total Weekly Contact Hours 2.00
Workload: Part Time
Workload Type Contact Type Workload Description Frequency Average Weekly Learner Workload Hours
Lecture Contact Lectures on Aviation Business Models (including from guest lecturers), class discussion and case study review. Every Week 2.00 2
Independent & Directed Learning (Non-contact) Non Contact Directed activities to support classroom delivery, study, research and reading. Every Week 5.00 5
Total Hours 7.00
Total Weekly Learner Workload 7.00
Total Weekly Contact Hours 2.00
 
Module Resources
Recommended Book Resources
  • Vitaly Guzhva, Sunder Raghavan, Damon D’Agostino. (2018), Aircraft Leasing and Financing Tools for Success in International Aircraft Acquisition and Management, [ISBN: 9780128152850].
  • Rob Murphy. (2022), Aircraft Financing, [ISBN: 9781526519733].
  • KPMG and Airline Economics. (2022), Aviation Industry Leaders Report 2022: Recovery through Resilience, Aviation News Ltc, London.
This module does not have any article/paper resources
Other Resources
 
Module Delivered in
Programme Code Programme Semester Delivery
CR_BAVMA_9 Master of Business Administration with Aviation Management 3 Mandatory