Table of Contents

Preface
1 Industry Financial Performance
2 Airline Financial Statements
3 Airline Financial Ratios
4 Airline Valuation
5 Sources of Finance
6 Equity Finance
7 Airline Privatisation
8 Airline Financial Planning and Appraisal
9 Risk Management: Foreign Currency, Fuel Prices and Interest Rates
10 Aircraft Leasing
11 Aircraft Securitisation
12 Airline Bankruptcy
13 Industry Financial Prospects

About the Author

Dr Peter Morrell is a consultant and visiting professor at Cranfield University. He graduated in economics from Cambridge University and subsequently gained a Masters in air transportation from the Massachusetts Institute of Technology, where he worked on NASA sponsored research into airline forecasting and profitability. He has a doctorate from Cranfield University. Peter was employed by a merchant bank, Lazard Brothers, in the City of London, before joining the Association of European Airlines in Brussels as an economist in 1971. He worked as an air transport consultant from 1978 to 1991, initially with Alistair Tucker Associates and subsequently independently. Peter is a former head of the Department of Air Transport at the College of Aeronautics at Cranfield University, where he held a chair in air transport economics and finance, and he is the European Editor for the Journal of Air Transport Management as well as on the editorial board of Tourism Economics. He has lectured on numerous industry courses, and directs the Airline Finance course at Cranfield. Peter lectured on airline industry regulation for the Royal Aeronautical Society's annual Oxford Air Transport Course, and has taught airline management at the French L'Ecole National de l'Aviation Civil (ENAC), Donau-Universitat in Austria, Chang Jung University in Taiwan, the Hong Kong Polytechnic University and the Brazilian Instituto de Aviacao Civil. He has also lectured on in-house management courses for airlines which included British Airways, Virgin Atlantic, Singapore Airlines, Malaysia Airlines, South African Airways, Finnair, LOT Polish Airlines, Emirates Airlines and Cyprus Airways, and courses for other clients such as British Telecom. Peter has been involved in numerous airline and airport projects worldwide. His airline consultancy has included work for British Airways, British Midland, Qantas, LOT Polish Airlines, SAS, Air One, Royal Nepal Airlines and a number of African and Caribbean airlines. Airport projects have been as far afield as Argentina and Mongolia, and included Hannover, Berlin, Luton and Barcelona in Europe. Peter also directed a number of major studies for the European Commission. Peter is also the author of Moving Boxes by Air: The Economics of International Air Cargo (Ashgate, 2011) and has written many articles for both academic and industry journals.

Reviews

'The Fourth Edition of Dr. Peter Morrell's Airline Finance is required reading for anyone looking to understand the financial complexities of aviation. His use of real-world examples, taken from airlines' annual reports, renders the work interesting, insightful and relevant, and his explanation of what everything means and how it all fits together is world-class. Look no further for real expertise in aviation finance. Well done, Peter!' John Slosar, Chief Executive, Cathay Pacific Airways Ltd 'This book takes the non-specialist reader on a marvelous and informative tour through the intricacies of airline finance. It should be required reading for any analyst, financier, airline executive, regulator or student wanting to understand how to measure and compare airline financial performance, raise finance to buy aircraft, manage financial risk, and more. It's also an entertaining read packed with up to date examples drawn from airline situations around the world.' Brian Pearce, Chief Economist, International Air Transport Association Reviews previous editions: 'Peter Morrell has cleverly dissected the key aspects of airline finances and provided an excellent guide to both the routine financial requirements, such as financial statements and ratios, and also to the specific issues facing airline finance executives, such as airline risk management, valuations and privatisations. This is an essential compendium to airline finance executives, their financiers and investors and anyone with a passion for this fascinating industry.' Ian Milne, British Airways. Author of Bridging the GAAP '...an excellent introduction for anyone starting at an airline or in aircraft finance...an excellent, clearly written introduction to the subject.' Airfinance Journal '...a fascinating book that, in just over 300 pages, managed to provide a good explanation of many of those 'strange things' that you often read about but struggle to find a clear explanation for, such as the valuation of route rights, leasing options and costs of frequent flyer programmes...very good...' M2 Best Books '...a well written text providing the essentials to understanding all areas of airline finance and can be treated as a key resource for students of airline management.' Aerlines Magazine 'Airline Finance is a handy resource guide for either the security analyst assigned to follow the airline industry or for an aviation executive who needs to implement financial strategies intended to increase shareholder wealth.' Aerlines, March 2009 'The book strikes the right balance between the practical and technical financial elements, incorporating a range of aviation examples (often via useful box case studies) as well as hypothetical work-through examples. All in all, it provided me with some very useful insights into airline finance, both in terms of the detailed airline financial calculations required and the bigger aviation issues that impact upon financial decision-making.' Journal of Transport Geography, vol. 37, 2014