ABSTRACT
Aircraft are very capital intensive assets. This chapter explores the main sources of finance that are currently available to airlines and airline manufacturers. The financing options that are available to airlines to add, replace and remove aircraft from their fleets is now being increasingly driven by the potential to reduce carbon footprints and generate significant financial savings. The advantages and disadvantages of different financing options, alongside their relative availability in certain markets, must be carefully considered by airlines as part of their overall financing strategies. A high-level review of financial statements is provided, including how to identify and use Key Performance Indicators (KPI’s) to interpret individual financial statements. The key factors and options concerning market failure for US and UK registered airlines are discussed.
