PROFESSIONAL DIPLOMA IN AVIATION LEASING AND FINANCE

Thanks to aviation, our world is more interconnected than ever before—it affords us the opportunity to explore far-off countries and experience new cultures, peoples, philosophies, and points-of-view; it connects us in-person with distant friends, family, and colleagues; it ensures that the packages we’ve ordered online reach our front doorsteps.

None of this would be possible, however, without the aircraft leasing and finance sector, which although relatively young, has already had a profound and far-reaching impact on the world.

The Professional Diploma in Aviation Leasing & Finance at City Colleges is an executive-level programme intended to provide participants with a comprehensive and commercially focused introduction to this dynamic and globally important industry.

Over ten (10) sessions students will explore and engage the core principles and concepts fundamental to understanding this industry.

Students who study the Professional Diploma in Aviation Leasing and Finance will learn first-hand from industry experts and current practitioners with specialised knowledge in the field.

Course Duration

The Professional Diploma in Aviation Leasing & Finance is run over ten (10) sessions comprising of three-hour lectures totalling 30 hours. The course can be done on demand and at your own pace.

Diploma in Aviation Leasing and Finance content can be completed at your own pace.

Topic 1: Introduction to Aviation Leasing & Finance and Industry Overview & Landscape

• Course overview and timeline
• Introduction to commercial aviation
• History of the aircraft leasing industry
• Ireland as a centre of excellence
• Basics of aviation leasing and finance
• Aircraft leasing vs. ownership—the pros and cons
• Types of leases (i.e., operating lease, finance lease, wet lease, dry lease, synthetic lease, tax lease, etc.)
• Typical multijurisdictional transaction structures

Topic 2: Aircraft Operating Leases

• Introduction to aircraft operating leases
• The leasing life cycle (i.e., pre-delivery, delivery, operations, and redelivery)
• Essential lease provisions and clauses
• Key lessor and lessee concerns and considerations
• Common negotiation points
• Lease negotiation—art vs. science

Topic 3: Aviation Finance

• Introduction to investing in aircraft assets
• Raising capital and methods of fleet financing
• The importance of diversification
• Considerations for aircraft financiers and lenders (i.e., security interests, enforcement, etc.)

Topic 4: Principles of Aircraft Selection

• Foundations of fleet planning—the three golden rules
• Aircraft performance
• Aircraft economics
• Perspectives on aircraft selection—airlines vs. lessors vs. OEMs

Topic 5: Aircraft Operating Lessors and Aircraft Trading

• Overview of aircraft operating lessors
• Common business models
• Aircraft marketing strategies
• Leasing portfolio management
• Overview of the aircraft secondary market
• Common sell- and buy-side transaction types
• Acquisition and sales process of used aircraft
• Transferability considerations
• Key transaction documentation and the Global Aircraft Trading System (GATS)

Topic 6: Aircraft Maintenance Compensation

• Basics of aircraft maintenance compensation development and management
• Maintenance compensation mechanisms (i.e., cash reserves, end-of-lease adjustments, letters of credit, etc.)
• Sources of maintenance data
• Reserve economics (i.e., cost drivers, rate determination, escalation, etc.)
• Maintenance exposure analysis

Topic 7: Lease Pricing and Aircraft Valuation & Appraisal

• Modeling a lease transaction
• Evaluation metrics—NPV vs. IRR
• Sensitivity and scenario analyses
• Calculating minimum lease payments
• Introduction to aircraft appraisals
• Purpose of an appraisal
• Appraisal process
• Valuation methodologies
• Appraisal firms

Topic 8: Risk & Repossessions and Airline Credit Analysis

• Types of risks faced by aircraft operating lessors (i.e., market risk, asset risk, counterparty credit risk, jurisdictional risk, etc.)
• Effective risk mitigation and industry best practices
• Due diligence—understanding its importance and process overview
• Repossessions and extractions
• Emerging issues to consider
• Introduction to credit analysis
• Types of airlines and airline business models
• Quantitative and qualitative risk factors
• Credit scorecards

Topic 9: Legal & Regulatory Framework, Insurance, and Taxation

• Introduction to aviation law
• Multilateral air law treaties and current parties
• Cape Town Convention (i.e., aircraft objects, international interests, registration, connecting factors, remedies, etc.)
• Introduction to aviation insurance
• Types of insurance (i.e., hull insurance, liability insurance, war risk, additional coverage, etc.)
• Insurance parties
• Introduction to aviation tax
• Key taxation issues (i.e., residency, permanent establishment, trading requirement, capital allowances, tax treaties, etc.)
• Cross-border transaction considerations
• Recent changes in tax law impacting aircraft lessors and lessees

Topic 10: Closing, Career Session, and Career Panel & Networking Event

• Course recap
• What’s next for aviation in a post-COVID19 world?
• Discussion of final assignment requirements
• Course feedback and evaluations
• Overview of functional roles
• Recruiting advice and insights
• Industry associations and organisations
• Career panel discussion and Q&A session

Diploma in Aviation Leasing and Finance will be assessed as follows:

Final Written Assignment

Students will prepare and submit an individually written assignment of not more than 2,500 words in length, including notes and appendices. A pass grade on the written assignment will be required for awarding the Aviation Leasing and Finance Professional Diploma. A fail grade will result in a Certificate of Attendance for the course but without the Diploma being awarded.

Further information on course assessment criteria will be provided on the first day of class.