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Jenn Atkins2024-06-12 15:18:472024-06-12 15:18:47How Much Does Ownership Really Cost an Investor?Airline & Airport Services
mba assists airlines and airports with a diverse set of solutions by identifying opportunities; whether through analyzing current service, forecasting potential service, assessing business revenues, or presenting a case to an airline, airport or investor.
Air Service Consulting
Catchment Area/ Leakage Analysis
A critical element in understanding an airport’s air service growth need is understanding the population that the airport serves. mba is able to leverage IP address and cell phone data based locational data sources to identify and analyze an airport’s true addressable market area, the top destinations that the catchment area population is traveling to, and the airport that catchment area passengers are flying out of or the alternate means of transport that they are using. mba combines this information with a sound understanding of the demographics of an airport’s catchment area to draw insights into the drivers of air travel and the avenues for growth.
Air Service Development
mba brings the airline perspective to air service development through decades of working with operators. We work with airports and communities to understand the need and drive for new or additional service, and use a data driven approach combined with our knowledge of airline business models to identify target routes and the most suitable airlines to service these routes. We help airports build sound business cases to establish or grow mutually beneficial services that meet the community’s needs and are successful in an airline’s route network, to ensure long-term trusted partnerships.
Airport Financial Consulting Services
Rates and Charges Consulting
Rates and charges drive an airport’s aeronautical revenues. Having a sound policy for rates and charges is critical in ensuring that an airport’s financial objectives are met. mba works with airport clients to review current rates and charges to ensure regulatory compliance, builds custom models to calculate rates and charges based on a thorough review of tenant agreements, and assess alternate methodologies or adjustments as required.
Feasibility Studies
The business of airports is capital intensive. Feasibility studies are essential to aid airport executives in making informed investment decisions. mba assists airports in performing financial feasibility studies, whether they relate to evaluating a capital improvement project, assessing the airport’s ability to issue additional debt or otherwise.
Bond Consulting
mba has decades of experience helping airlines and leasing companies access capital markets, and is embarking on providing the same service for airports. The municipal bond markets are an important source of financing for an airport’s capital improvement projects. An expert’s report, forecasting traffic, aircraft movements, revenues and expenses, and key financial ratios and matrices is required when bonds are issued. mba will collaborate with various stakeholders, gather relevant data, perform the necessary analysis, and draft the supporting Report of the Airport Consultant as required for bonds issuances.
Airline Negotiations Consulting
mba understand the comprehensive nature of lease agreements and the crucial impact on airport financials. mba facilitates airports to meet their financial objectives and investment plans while remaining competitive and maintaining reasonable rates and charges for operators.
Airport Transaction Advisory (P3)
With the ever increasing need for aviation infrastructure investment, we have seen a growth of public private partnerships (P3s) airport projects globally. mba uses advanced models and market knowledge to forecast traffic and revenues in supporting airports and investors evaluate bids and investments.
Traffic Forecasting
mba’s route and market-level traffic forecasts support financial transactions and inform investment decisions and strategic decisions. Our forecasts, trusted by players across the aviation industry, rely on robust econometric modeling coupled with an intimate understanding of the market, industry, and players involved.
Airline Services
Intangible Asset Valuations
Intangible assets require a unique set of skills and financial acumen to properly value by today’s complex standards. mba is a world leader in intangible asset valuation and is known for valuing the international routes and slots of the world’s largest airlines. While mba specializes in the valuation of routes, slots, and gates, the firm also performs valuations of frequent flyer programs and intellectual properties such as trademarks, patents, and brand names.
The analysis of these types of assets can be difficult and dependent on available data and market conditions. Whether fulfilling requirements for financing, a potential sale, or financial reporting purposes, mba’s Team has the knowledge and expertise desired to complete these valuations.
Loyalty Program Advisory
Airlines of various sizes, from major international carriers to regional and budget airlines, operate loyalty programs. An airline loyalty program comprises key assets that contribute to its overall value and attractiveness to both the airline and its members. These assets include its member base, data and insights, brand loyalty, partnerships and alliances, technology infrastructure and intellectual property. An airline’s loyalty program’s assets collectively contribute to its ability to drive revenue, enhance customer loyalty, and differentiate the airline’s brand in a competitive market landscape. mba has extensive experience in loyalty program design and strategy to enable the creation of impactful solutions that drive customer engagement, enhance brand loyalty, and ultimately, boost business growth and value.
Leveraging its experience and industry best practices, mba can provide its clients with a clear understanding of improvement areas for the existing program to increase engagement and drive value.
