Air Business Academy

Aircraft Evaluation

Objectives

• Examine the techniques and methods which are used by airlines to analyse aircraft

• Learn how airlines organise fleet planning and the aircraft evaluation processes

• Follow the example of a major European airline’s evaluation process

• Practice the economic analysis techniques through a comprehensive business case

• Discuss key issues facing airlines and manufacturers regarding aircraft availability and financing

• Gain knowledge about financial analysis, including investment valuation, sensitivity analysis and leasing vs. purchasing

Topics covered

• Current and emerging industry trends
• Basic aircraft evaluation principles
• Qualitative aircraft evaluation criteria
• Aircraft evaluation for a major airline
• Aircraft selection:
  - Airplane Direct Operating Cost
  - Cost breakdown by categories
  - Which aircraft type?
  - Which cabin? – Influence of aircraft structure and geometry on a cabin

• Risk vs. reward evaluation – Focus on aircraft performance
• Aircraft utilisation and productivity impact
• Aircraft standardisation?
• Analysis of investment in aircraft:
  - Cash flow estimates
  - Airlines' cost of capital
  - Measuring profitability: NPV, IRR
• Leasing vs. purchasing aircraft
• Business cases

Who should attend

• The course will benefit those who need instruction or more insight into aircraft selection and acquisition processes

• Airline managers involved in fleet planning and procurement, asset management, strategic planning, finance and operations

• Manufacturer analysts with customer interfaces, particularly those in sales and marketing

• Asset management finance and contracts managers

• Analysts and managers of aircraft leasing companies, banks, appraisal firms and insurance companies

Presenters

Thomas Fouché, Air Transport Consultant and Course Director, AirBusiness Academy

Robert Gaag, Director Sales and Marketing Europe, Lufthansa Technik

Darcy Olmos Mancilla, Finance Consultant, AirBusiness Academy

Register now