Republic of the Philippines
PHILIPPINE STATE COLLEGE OF AERONAUTICS
Piccio Garden, Villamor, Pasay City 1301
INSTITUTE OF GRADUATE STUDIES
SYLLABUS OF INSTRUCTIONS
I. COURSE CODE : MEAM 613
II. COURSE TITLE : AVIATIONBUSINESS ANDAIRLINE
FINANCIAL MANAGEMENT
III. COURSE CREDIT : 3 UNITS/54 HOURS
A. COURSE DESCRIPTION:
The course covers the entire gamut of airline business with emphasis on
the broad understandingof all areas of airline finance. While there may
be numerous financial management, corporate finance and related text
available, none of these provide a unique appreciation of the airline
business as this subject will. The area of airline business will introduce
students to the current concepts of airline marketing, product analysis,
pricing, revenue management, product distribution, branding, relationship
management, selling, advertising, promotional policies and the future of
the airline industry.
Students will be immersed also to the unique financial system of the airline
industry. Topics will cover the financial trends of the airline industry as a
whole with focus on major regions, airline financial statements, airline
financial ratios, airline valuation, sources of finance, equity finance, airline
privatization, airline planning and appraisal, foreign currency, fuel prices
and interests’ rates, aircraft leasing, aircraft securitization, airline
bankruptcy, and the airline financial prospect.
B. COURSE OBJECTIVES:
To provide the students a comprehensive understanding of the airline
business and its financial requirements to operate the business. It will cover
the major areas of airline management, functions and operations leading
to a full understanding on the various facets of aviation business and the
consequent financial requirements that must be needed to make the
business profitable. At the end of the course, the student will be sufficiently
introduced to the past, present and future of aviation business with
emphasis on financial concerns:
Highlights of global aviation business
Airline organizations, functions and operations
Airline economics of legacy and low-cost carriers
Airline aero politics; air traffic rights, freedoms of the sky,
mergers, acquisitions etc.
Airline marketing and its variables
Airline financial reporting system, ratios, valuation, equity etc.
C. SCOPE OF THE COURSE/CONTENTS:
Block 1: Airline Marketing and Management
1. The Fundamentals
2. The Market for Air Transport Services
3. The Marketing Environment
4. Airline Business and Marketing Strategies
5. Product Analysis in Airline Marketing
6. Pricing and Revenue Management
7. Distributing the Product
8. Brands Management in Airline Marketing
9. Relationship Marketing
10. Airline Selling, Advertising and Promotional Policies
11. The Future of Airline Marketing
Block 2: Airline Finance
12. Industry Financial Performance
13. Airline Financial Statements
14. Airline Financial Ratios
15. Airline Valuation
16. Sources of Finance
17. Equity Finance
18. Airline Privatisation
19. Airline Financial Planning and Appraisal
20. Risk Management: Foreign Currency, fuel Prices and Interest Rates
21. Aircraft Leasing
22. Aircraft Securitisation
23. Airline Bankruptcy
24. Industry Financial Prospect
D. COURSE REQUIREMENTS:
1. Oral and Written Report;
2. Individual reaction papers on related aviation business issues;
3. Group Term papers; and
4. Mid-term examination at mid-point of the class and final examination
at the end.
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E. EVALUATION:
Two principal criteria will be used in determining your grade. The first is the
quality of your contribution in class, i.e. leading class, comments in class
and regular attendance in class. The second criteria are the quality of the
understanding of organization, conceptualization and thoroughness of
your written reaction papers/assignments.
F. REFERENCES:
Airline Marketing and Management, 6th Edition(2007) by Stephen
Shaw, SSA Ltd, Oxfordshire, UK; Ashgate Publishing Limited, England.
Airline Finance, 3rd Edition(2013) by Peter S. Morrell, Ashgate
Publishing Limited, England
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