A concept map that communicates the most important topics and relationships presented in the module. It should demonstrate an awareness of audience, purpose, and context following aviation/airport finance-specific conventions.

1 Aviation Innovation Overview and Objectives Expand All ~ Collapse All Course Overview Welcome to Airport Administration and Finance! Let's imagine that your Corporate Finance class was like learning to drive a car. You learned about acceleration, deceleration, and directional controls. You learned about the indicators, warning signs, and regulations. You understood what the car could and couldn't do and what you could and couldn't do when you went for a drive. Now let's imagine that this class will teach you to fly an airplane. Many things you learned about driving a car will be helpful, but when you are learning to fly, you need to remember you are in an airplane, not a car. Your flight instructor would not teach you to fly by comparing it to driving, and this course will not make comparisons to corporate finance. Just like you would be ready to learn something very different during your first flight lesson, you should be ready to learn something new in this class. You will be able to recognize principles of finance that are the same for public and private businesses and see the 30,000-foot view of airport administration and finance. You will also practice solving real-world problems and understand how airports operate within the aviation industry. Module Overview In this module, we will read Chapter 1: The Nature of Airports and Chapter 2: The Metamorphosis of Airports and begin our understanding of what makes airport finance different from airline or corporate finance. The following are a few ways that the textbook mentions: 1. The earnings before interest and taxes (EBIT) may be different from operating profit because airport financial statements include nonoperating revenue. 2. The difference between revenues generated from transfer passengers and destination passengers even though the aircraft unit cost remains the same. An airplane with a high load factor of transfer passengers will result in higher revenues for the airport. This illustrates one way that airline strategies (point-to-point route networks vs hub route networks) can impact the airport's financial position. 3. In a standard profitability analysis, asset depreciation and amortization are included in the operating expenses because they are within managerial control, while interest and taxes are not. Because airports are capital-intensive, they have a substantial investment in airport assets making asset depreciation and amortization behave as nonoperating expenses. This lowers the value of the assets in the balance sheet even though the value is not then realized as an expense. Airports add them to the operating profit as EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Throughout this course, the textbook will illustrate more airport characteristics that are important for financial managers to understand. About 85% of an airport's assets are long-term fixed assets. As you progress through the course, think about if using standard financial analysis will result in accurate and useful information for financial decisions.Throughout this course, the textbook will illustrate more airport characteristics that are important for financial managers to understand. About 85% of an airport's assets are long-term fixed assets. As you progress through the course, think about if using standard financial analysis will result in accurate and useful information for financial decisions. We will also create an aviation innovation concept paper. This is your opportunity to express your creative thinking and logical reasoning skills as you work on the assignment. Your textbook has several figures that may offer ideas for your concept map on pages 81, 146, 201, 221, 227, 258, and 273. Students with an active-learner disposition may find this course more rewarding and benefit the most from the material. Ask for help when you need it, follow your curiosity, engage with your classmates, and be the spark that sets the future in motion! Hunt Library Training Course You must complete your Hunt Library Basic Training Certification in order to access Module 2. Module Objectives Upon successful completion of this module, you will be able to: 1. Communicate the relevancy of course concepts and terms. (LO 1-10) 2. Innovate a solution to a current airport administration and finance problem using root cause analysis. Use financial reports to support a concept proposal (airport annual reports, FAA CATS Forms 126 and 127, ARN Factbook, etc.). (LO 6) FINE 418 Course Learning Outcomes (LOs) are located in the Syllabus.1.3 Aviation Innovation Readings & Resources Readings Read the following chapters of Foundations of Airport Economics and Finance (ProQuest/Hunt Library.). Chapter 1: The nature of airports Chapter 2: The metamorphosis of airports Chapter 1 provides a review of airport management and discusses common airport characteristics and policies, airports' role in the global economy, and their social and environmental impacts. Chapter 2 explains how the growth of aviation and the commercialization of airports have changed airport business models, ownership structures, and trends in airline route network strategies. Resources Managed innovation is a strategy used for short- and long-term organizational strategies. Organizations can use root cause analysis to identify innovative solutions for immediate problems. Organizations with more 'organizational slack' have the ability to support more significant and forward-thinking innovations for a long-term strategic competitive advantage (Cyert & March, 1992). Understanding the process and value of these innovation strategies will help airport administrators realize their vision, mission, and goals. The following resources provide various perspectives about the topic of innovation. Reference: Cyert, R. M., & March, J. G. (1992). A behavioral theory of the firm (2"d ed.). Blackwell Publishers. pp. 188-190. These resources are not required reading but are here to help you learn more about topics related to the module. You may want to skim these to help generate some ideas for your assignments in this and future modules. Federal Aviation Administration CATS View Reports and Spreadsheets (airport financial reports) Federal Aviation Administration - Safety Propels Innovation, Innovation Propels Progress speech Federal Aviation Administration - Commercial Space Transportation Legal Implications of Data Collection at Airports (The National Academies Press) (You will need to create a free account with The National Academies Press using your ERAU email in order to download this article.) Technological fit, control rights allocation, and innovation performance of corporate venture capital-backed enterprises (Taylor & Francis/Hunt Library) Wicked Problem Solvers (HBR/Hunt Library)1.6 Concept Map Assignment Overview Understanding and communicating important concepts and their connections and relationships can provide students with the insight and intuition needed in today's aviation industry. To start your concept map, select a minimum of five of the most important concepts introduced in this module and add them to your concept map. Illustrate what you have learned in this module by showing how the main concepts and research are related to and/or are connected to other terms in this course. These assignments are graded on your ability to assess and to visually communicate what you have learned. These assessments are similar to traditional essay quizzes or exams using a different means of communication. You will build on this concept map throughout the course, adding new content from the module and how it changed or reinforced your thinking. For each module, use a fill color that is different than you have previously and add M1, M2, M3, etc. at the beginning of each concept, depending on which module you are adding to your map. Submission Prepare a concept map that communicates the most important topics and relationships presented in the module. It should demonstrate an awareness of audience, purpose, and context following aviation/airport finance-specific conventions. Concept maps should identify the most general concepts first at the top of the map, then more specific concepts. Link the concepts that relate to each other using descriptive text. Look for cross-linkages. Please review the Lucidchart User Guide (ERAU) for information on creating an account and how to create a concept map. There are free concept map templates that you can use. Important Information Include a Definitions section that defines all the concepts and terms used in your concept map. Your illustrative graphic should include a narrative that describes the information shown. This will allow people with disabilities to access the content of your work