Credit Risk
In the context of aviation, credit risk refers to the potential that a borrower, such as an airline or aircraft leasing company, will fail to meet its obligations in accordance with agreed terms. This risk is particularly relevant in aviation due to the high costs associated with purchasing, maintaining, and operating aircraft. Lenders, such as banks and financial institutions, face the risk that the borrower may default on their loan, leading to financial loss. This risk is assessed based on the borrower's creditworthiness, which is determined by their financial condition, profitability, cash flow, and industry conditions. In aviation, credit risk can also be influenced by factors such as fluctuations in fuel prices, changes in aviation regulations, and shifts in passenger demand. To mitigate credit risk, lenders may require collateral, such as the aircraft itself, or guarantees from the borrower. They may also charge higher interest rates to compensate for the increased risk.
Your Previous Searches
Random Picks
- Predictive Analytics: In the context of aviation, predictive analytics refers to the use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data. It is a form of advanced analytics t ... Read More >>
- Cargo Compartment: In aviation, the cargo compartment is a designated area of an aircraft where cargo is stored during flight. It is typically located in the lower part of the fuselage or in the tail section of the aircraft. The cargo compartment is designed ... Read More >>
- Practical Flight Test: Practical Flight test is a test conducted by a certified flight instructor to evaluate a pilot's ability to operate an aircraft safely and efficiently. The test includes both oral and flight components, and covers a range of topics such as ... Read More >>
Top News
I got $2,500 for switching to a later flight. Here's how to decide if you should...
Holiday travels often coincide with inclement weather. If your flight is overbooked, you may be compensated if you're willing to take a later flight....
News Source: Business Insider on 2024-11-22
Haiti’s children ‘dragged into hell’ as gang violence rages...
Many Haitian children face stark choice of joining a gang or suffering from violence, poverty and hunger engulfing them....
News Source: Al Jazeera English on 2024-11-22
New rules and regulations for airlines, fliers ahead of Thanksgiving travel...
The busiest travel days of the year are right around the corner with millions of people expected to take to the skies for the Thanksgiving holiday. This year's holiday season also coincides with some ...
News Source: CBS News on 2024-11-22
Airports see early rush as Thanksgiving travel season begins...
With Thanksgiving less than a week away, travelers are already crowding airports. Airlines expect to fly tens of millions of passengers between today and the Monday after Thanksgiving. Kris Van Cleave...
News Source: CBS News on 2024-11-22
America’s struggling budget airlines are pursuing premium passengers to solve ...
United Airlines CEO Scott Kirby recently declared that low-cost carriers were using “a fundamentally flawed business model” and customers hate flying on them....
News Source: Fortune on 2024-11-22