Comparative Examination Between the Aircraft and Other Asset Classes

From Chaps.  3 and  4 , the drivers and dynamics of aviation finance on aircraft pricing has been discussed as well as from Chap.  5 , the construction of the indexes representing the aircraft asset and empirically tested to show its characteristics. The

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Aircraft Valuation “This book fills a niche in the market. It not only delivers detailed information on contemporary aircraft leasing methodologies and markets but also provides a comprehensive review of the impacts on the aviation industry from the COVID-19. This is the best book for both academia and practitioners in the aircraft leasing field.” —Chris C. Hsu, Ph.D., Professor of Finance, Director of CUNY Aviation Institute, York College, The City University of New York

David Yu

Aircraft Valuation Airplane Investments as an Asset Class

David Yu, PhD. CFA, Senior ISTAT Certified Aviation Appraiser New York University Shanghai Shanghai, China

ISBN 978-981-15-6742-1    ISBN 978-981-15-6743-8 (eBook) https://doi.org/10.1007/978-981-15-6743-8 © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Singapore Pte Ltd. 2020 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: © Nicole Lienemann / EyeEm / Getty Images This Palgrave Macmillan imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-­01/04 Gateway East, Singapore 189721, Singapore

This book is dedicated to my children Terry and Theresa so they can aspire for greater knowledge.

Preface: In the News Today - On-going Significance of the COVID-19 Impacts on the Aviation Industry

Today, the world is in the midst of a vastly different environment than we have known in recent times and it seems every day there is news that has significant impact on the aviation industry, aircraft values and the global economy. While there are a few exogenous economic shocks to compare against, COVID-19 seems to have even worse effects than the most recent cases of economic shocks including SARS and the great financial crisis. Initially, at the start of the co