Such analyses typically include an assessment of estimated capital costs, capitalized interest, debt service requirements, and other fund deposits and their allocation to identified cost/revenue centers. Estimates are developed for operational and maintenance expenses, administrative costs and staffing associated with a particular project. Revenues from all sources are estimated, including those associated with new facilities or tenants likely to come on stream during the forecast period. All revenues, expenses, debt service, and fund deposits are allocated to appropriate cost revenue centers. The resultant cash flows are then examined for their sensitivity to projected traffic volumes, or the phasing of the construction plan. In addition, serious consideration is given to the debt capacity of the airport, as well as the priorities of the airport owner/operator. Typically, airport rates and charges are reviewed and revised to assess their impact upon cash flows to support the overall project financing.
Aviation Demand Forecasts
Benefit Cost Analysis
L&B offers a wide range of airport financial and management services and routinely deals with complex airport financial situations, from shifting demographics and airline focus to the need for major capital resources as a result of long-deferred capital investments.
L&B's financial team includes experts in forecasting, economics, financial modeling, risk assessment, municipal finance, credit structures, capital program definition, statistics, database management and US federal funding guidelines. They have hands-on experience at many of the world's most successful airports in forecasting of aviation demand, aviation market analysis and benefit cost analysis. In the US market our staff also has extensive experience in development, project financing and revenue bond financial feasibility studies.
A critical part of future airport planning and development is the analysis of aviation traffic demand; an accurate assessment of future traffic volumes and major trends is fundamental to all types of facilities, environmental and financial planning. L&B prepares reliable aviation forecasts for airport facility planning, environmental assessments and bond financing programs. Our reputation in this area is recognized internationally, both within the aviation industry and by investment bankers and rating agencies.
L&B has wide-ranging experience and expertise in the conduct of independent financial and sensitivity analyses of major airport improvement projects. Depending on the requirements of the market, these encompass cost-benefit studies, privatization initiatives and strategic planning studies.