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Istat americas 20227/14/2023 "We see that a lot, particularly in what's reported – 'a 777 traded for x' – but nobody actually talks about the condition of the aircraft and the circumstance of the seller, the circumstances of the lease – or no lease. SMBC Aviation Capital chief executive Peter Barrett makes a similar argument, noting that "the biggest challenge is that aircraft valuation is not a bespoke business".īoeing 737-800s, for example, can vary in value depending on the lease and other circumstances however, "that bespoke nature is very hard to get", says Barrett. "Frequently, when we have an attractive lease attached, there's not a commensurate valuation… It only looks at the metal value independently, which is fine, but you could have two different airplanes – one that's parked and another that's leased out at very good lease rates – and, for an investor or an owner, it's two different sets of cash flows." "Where I see a little bit of a disconnect is that an appraiser looks at the airplane – and the condition of the airplane, and its value – as a naked airplane," noted Steven Udvar-Hazy, chief executive of Air Lease. Airline Business special: CEOs to watch in 2021Īircraft appraisals should take more tailored approaches towards aircraft valuations, senior leasing executives suggested during a panel discussion at the ISTAT Americas conference in Phoenix on 1 March.FlightGlobal Guide to Business Aviation Training and Safety 2021.EDGE: A new global force in aerospace and defence.Shell Aviation: What will it take to Decarbonise Aviation?.What does the future of aviation look like in 2022?. ![]() Guide to Business Aviation Training and Safety 2022. ![]()
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