module specification

Effective financial decision-making is a critical capability for managers operating within the complex and capital-intensive aviation industry. While decision-making is often an intuitive process, in the context of aviation finance it must be grounded in robust analysis and strategic insight. Finance plays a central role in executing organisational strategy, and financial managers are key to ensuring the optimal allocation of financial resources while also balancing the needs of shareholders, stakeholders, and regulatory frameworks.
This module introduces students to the core principles, tools, and frameworks of financial management within the aviation sector. It equips learners with the skills and knowledge required to support informed financial decisions in areas such as investment planning, risk assessment, cost control, and value creation. Students will explore the role of finance in ensuring corporate sustainability, operational efficiency, and effective governance within aviation businesses.
The module highlights the application of financial concepts in real-world aviation contexts, emphasising performance indicators and sector-specific financial methodologies. Through a practical and analytical lens, students will examine how aviation managers approach key financial decisions—ranging from capital investments to working capital management, and from financial reporting to risk-return analysis.
Although aviation managers may not perform detailed financial analysis themselves, a comprehensive understanding of financial processes is essential. This module enables future aviation professionals to critically interpret financial information, participate meaningfully in financial planning discussions, and ensure that strategic decisions are financially sound and aligned with long-term business objectives.
The module aims for students to be able to:
1. Use the concept of ‘time value of money’ to synthesise and compare alternative outcomes for the corporate decision-making process
2. Evaluate various corporate strategic decision-making techniques to a variety of long-term planning scenarios
3. Compare and assess the performance of the aviation industry both historically and currently
4. Appraise financial statements such as balance sheets, financial ratios, etc. and evaluate how theses statements and ratios are used in evaluating the financial health of a company
5. Give an appraisal of financial plans and long-term business viability

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•  Fundamentals of financial decision-making: introduction to the module,
   financial variables for decision-making, accounting conventions and the need
   for accounting and finance for managers, roles of financial function,
   objectives of financial decision-making, planning and control. LO1
•  Balancing risk and expected return: identifying and managing financial risk,
   main forms of financial risk, methods for fuel and currency hedging of
   financial risk, including futures, options, forward rate agreements, swaps and
   money market hedges, confidence on expected return, risk appraisal
   methods including sensitivity analysis, scenario analysis, expected NPV,
   IRR, ROCE and event tree diagrams. LO1/2
• Arithmetic of finance for decision-making: analysing, interpreting and
   reporting financial results/statements, contribution margin analysis, financial
   ratio analysis including profitability, efficiency, liquidity, gearing and
   investment performance. LO2
•  Making capital investment decisions: issues in investment appraisal such as
   cash flow estimation, relevant costs and benefits, impact of taxation and the
   problem of inflation. Sources of aviation finance LO3
•  Cost of loan capital, gearing and its effect on risk and
   returns to shareholders, factors influencing the level of gearing in practice,
   budgeting. LO3
•  Issues in managing working capital and short/long term financing: nature and
   purpose of working capital, analysis and interpretation of working capital
   ratio, working capital policies, sources of short and long-term financing. L01/3
•  Financial governance: corporate governance and the agency problem,
   Corporate Governance Codes. LO2
• Airport revenue generation  LO3

The formal delivery of teaching and learning for this module will comprise an average of three contact hours per week across 12 teaching weeks, supplemented by additional enrichment weeks throughout the semester. Each week will typically include a two-hour interactive session employing a range of teaching and learning strategies. These include workshops, lectures, guest speakers, case study discussions, panel debates, video analysis, as well as scenario-based activities and real-time simulations. Peer-to-peer learning is embedded within the module, as students collaborate to develop practical solutions and critically assess their impact.
Group work is a core component of the learning experience, encouraging active engagement as students share their knowledge and experience through discussion and collaboration. In addition, a one-hour seminar each week will adopt a more focused, discussion-led approach to explore current themes and emerging trends within the aviation industry. This will be further enriched through input from alumni, who will offer career insights, and guest lecturers who provide industry-specific context.
The module also makes extensive use of interactive learning spaces, supporting dialogue between students and staff, and facilitating access to a range of academic resources, including journal articles, professional websites, and external materials. Active participation in class discussions and debates is encouraged, recognising the diverse professional backgrounds and experiences that students bring to the programme.
Students are expected to prepare in advance for each session by reviewing the module schedule, which will be shared online and summarised by tutors at the end of each lecture. This preparation involves independent research and reading around the weekly themes to enable meaningful contributions to class discussions and Q&A activities.
Opportunities for reflective learning are embedded throughout the module. Students are encouraged to consider their approaches to tasks and discussions, and to reflect on informal feedback received during lectures and in relation to their submitted assessments.

At the end of this module, Students will be able to:

LO1. Analyse and evaluate aviation financial proposals by applying time value of money techniques
LO2. Critically analyse and evaluate strategic decisions using various analytical tools
LO3. Critically evaluate the interrelationship between risk, return, and value in the strategic operations
         and financial decision-making of airlines and airport

https://rl.talis.com/3/londonmet/lists/7590FE35-ECD0-42B2-0AB0-76F3EF40DE2B.html

Core Text:

Vasigh, B., Rowe Z, C.(2019). Foundations of Airline Finance. 3rd Edition Routledge

Other Texts:

Atrill, P. (2017). Financial Management for Decision Makers (8th ed). Pearson Education.

ICSA (2016). Financial Decision Making (2nd ed.). ICSA publishing Ltd.

Forester, S. (2014). Financial Management: Concepts and Applications, Global Edition. Pearson.

Drury, C. (2016). Management Accounting for Business, (5th ed.). London. Cengage Learning.

Director, S. (2012). Financial Analysis for HR Managers: Tools for Linking HR Strategy to Business Strategy (1st ed.). Pearson FT Press.

Seal, W. (2011). Management Accounting for Business Decisions (1st ed.). London: McGraw Hill.

Journals:

https://www.airfinancejournal.com/
https://www.aviationfinance.aero/