Hierarchical Financial Model for Developing a Regional Airline

The provided Excel template is a blueprint for starting a regional airline and accounts for the receipt of per-flight-leg subsidies jointly with regulated fares on a set of adjustable flight routes, having regard to the seasonality of operations.

Breakdown of pricing assumptions including VAT, inflation rates, and operating costs in Excel.
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Full Title: Hierarchical financial model for developing a regional airline (3-statement, nominal, dynamic, at monthly frequencies, with adjustable route maps)

This financial model has to do with establishing a regional airline with the fleet of 3-4  commissioned turboprops. It is a integrated (3-statement) nominal financial model developed at a monthly frequency to account for seasonality and weather condition effects, with a number of innovative features that relate to automating/internalizing the timing of repair and overhaul flags for the fleet (and developing the related automated overhaul cost schedules). It provides and reconciles the derivation of FCFF and FCFE cashflows under both the direct and indirect method.

The model is structured hierarchically with the aggregative “Centre-level” spreadsheet and an adjustable array of route-specific operating spreadsheets allocated to each aircraft in the fleet. The model also incorporates some advanced features, such as accounting for aviation subsidies and tax-deductible provisioning for the overhauls of Airframes and Engines, as well as the treatment of Tax Loss Carryforwards. 

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