This joint IATA/ERAU (Embry-Riddle Aeronautical University) course will provide you with a deeper understanding of the key economic and financial risks to which airlines are exposed. It will impart how each risk affects the business, both in terms of the direction and the size of the effect. Types of risks covered in detail in this course include: fuel prices, foreign exchange, interest rates, inflation, and credit.
Today’s aviation business is much more competitive with business models that range across the spectrum. The competitive and transparent nature of the business often results in thinner profit margins. Thus, there is little room for error when it comes to managing its financial aspects. In order to compete effectively, airlines must understand and manage all the risk factors that can impact their financial performance, including financial, economic, political, and data breaches, just to name a few. This course will impart knowledge not only on specific risks airlines are exposed to, but also how these risk factors affect and move in relation to each other. For example, foreign currency exposure (FX) and fuel prices are related to each other. To simply look at FX risk in isolation would omit the impact of fuel price forces. The ultimate goal of risk management is to respond to risks and exposures in a way that minimizes their impact on the volatility of the airline business. This course will offer you a networking opportunity with peer professionals, and a number of technical tools and skills that will allow you to quantify the aggregate and net risks as well as assess their overall impact on the business.
Course Code: TALF-94
Upon completing this course you will be able to:
The key topics that are covered during this course include:
This course is recommended for:
A co-branded IATA / ERAU Certificate is awarded upon successful completion of the course and final examination.