Airline Finance

ISBN-13: 9780367481414 / Angielski / Twarda / 2021 / 346 str.

Peter S. Morrell

Opis

Revised and updated in its fifth edition, this internationally renowned and respected book provides the essentials to understanding all areas of airline finance.

Spis treści

Preface; Chapter 1 Industry Financial Performance; 1.1 Government Regulation of Airlines: The ‘Level Playing Field’; 1.2 World Airline Financial Results; 1.3 Factors Affecting Financial Results; 1.4 Key Financial Issues; 1.5 Financial Implications of Environmental Measures; 1.6 Conclusions; Chapter 2 Airline Financial Statements; 2.1 Introduction; 2.2 Profit and Loss Account (Income Statement); Cathay Pacific Airways Ltd.; American Airlines; Cathay Pacific Airways and American Airlines Compared: Income Statement; Lufthansa Group and Other Airlines: Income Statement; 2.3 Balance Sheet; Assets; 2.4 Balance Sheet Comparison: Cathay Pacific Versus American Airlines; 2.5 Cash Flow Statement; 2.6 Value Added Statement; 2.7 Cash Value Added; 2.8 Progress Towards Greater Accounting Standardisation; Appendix 2.1 Frequent Flyer Programme Award Accounting; Appendix 2.2 Accounting for Finance and Operating Leases; Chapter 3 Airline Financial Ratios; 3.1 Performance/Earnings Ratios; 3.2 Risk or Solvency Ratios; 3.3 Liquidity Ratios; 3.4 Stock Market Ratios; 3.5 Inter-Airline Comparison of Financial Ratios; 3.6 Interpretation Problems; Chapter 4 Airline Valuation; 4.1 The Valuation of Intangible Assets; Route or Traffic Rights; Factors Determining the Value of Traffic Rights; Rights to Airport Slots; Valuation Methods; 4.2 The Valuation of Tangible Assets; 4.3 The Valuation of the Airline as a Whole; Discounted Cash Flow (DCF) Method; Ratio Method; 4.4 Aircraft Valuation; 4.5 Ratings Agencies; Chapter 5 Sources of Finance; 5.1 Sources of Internal Finance; 5.2 Sources of Short-Term External Finance; 5.3 Sources of Long-Term External Finance; Shareholders’ Equity Capital; Preference Share Capital; Bonds/Debentures/Unsecured Loan Stock/ABS; Equipment Trust Certificates; Term Loans; Leasing; Manufacturer’s Support; Islamic Finance; 5.4 Institutions Involved in Aircraft Finance; Banks; Export Credit Agencies; Operating Lessors; Governmental Financing Organisations; Chapter 6 Equity Finance; 6.1 Share Issues; 6.2 Equity Finance for Start-Up Airline; 6.3 Foreign Ownership Limits; 6.4 Share Trading and Stock Market Listings; 6.5 Initial Public Offering (IPO); 6.6 Mergers and Cross-Border Investment; Chapter 7 Airline Privatisation; 7.1 Introduction; 7.2 Previous Airline Privatisation Case Studies; Full Privatisation Through Flotation – British Airways; Full Privatisation Through Trade Sale and Flotation – Qantas; Gradual Privatisation – Lufthansa; Partial Privatisation – Kenya Airways; Full Privatisation and Trade Sale – Iberia; Gradual Privatisation and Acquisition – Air France; 7.3 The Results So Far by Region; North America; Caribbean; Central and South America; Europe; Africa/Middle East; Asia/Pacific; 7.4 Re-Nationalisation; Alitalia; TAP Air Portugal; Chapter 8 Airline Financial Planning and Appraisal; 8.1 Budget Preparation and Control; 8.2 Working Capital Management; Current Assets – Stocks; Current Assets – Cash and Marketable Securities; Current Liabilities; 8.3 Financial Planning; Cash Flow Forecasts; Decision Criteria; Discount Rate Calculation for NPV; Which Criterion to Choose?; Risk and Uncertainty; 8.4 Start-Up Airline Business Plan; Chapter 9 Risk Management: Foreign Currency and Interest Rates; 9.1 Exchange Rate Volatility; 9.2 Airline Trading Exposure to Currency Movements; 9.3 Airline Balance Sheet Exposure to Currency Movements; 9.4 Airline Foreign Exchange Risk Management; 9.5 Interest Rate Exposure; Chapter 10 Risk Management: Fuel Prices; 10.1 The Need and Means to Hedge Fuel; 10.2 Examples of Airline Fuel Hedging Practice; Chapter 11 Aircraft Leasing; 11.1 Finance Lease; Japanese Leveraged Leases; US Leveraged Leases; European Leveraged Leases; Extendible Operating Leases; 11.2 Operating Lease; 11.3 Japanese Operating Lease (JOL); 11.4 Wet Lease; 11.5 Sale and Leaseback; Appendix 11.1 Lease rental calculations; Appendix 11.2 Lease versus buy decision; Chapter 12 Aircraft Securitisation; 12.1 Equipment Trust Certificates: ETCs and EETCs; 12.2 Securitisation; ALPS 92-I Securitisation ; ALPS 94-I Securitisation; Airplanes 96 Securitisation; ALPS 96-I Securitisation; 12.3 Early Securitisations (2005–2008); 12.4 Conclusions; Chapter 13 Airline New Entry and bankruptcy; 13.1 Airline New Entry; 13.2 Airline Exit – Bankruptcy; 13.3 Airline Consolidation – Mergers and Acquisitions; 13.4 North America – Chapter 11 Bankruptcy; 13.5 Latin America; 13.6 UK/Europe; 13.7 Australasia; 13.8 Summary; Chapter 14 Industry Financial Prospects; 14.1 World Airline Traffic and Financial Forecasts; 14.2 World Airline Capital Expenditure Projections; 14.3 World Airline Financial Requirement Forecasts; 14.4 The Prospects for Cross-Border Mergers; Glossary of terms and abbreviations; Bibliography