Avolon Explores the Relevance and Importance of Aircraft Appraisers and Valuers to the Aviation Industry
February 18 2016 - 8:57AM
Business Wire
Changes are required within the appraiser
community to keep pace with market activity
Avolon, the international aircraft leasing company, today
publishes a Discussion Paper, Values and Valuers, which explores
the business of aircraft appraisal and valuation in the aviation
industry. The Paper, which is the latest in a series of Discussion
Papers published by Avolon, offers guidelines on what to look for
when making the key appraiser selection and explores the role of
appraisers from a broader industry perspective, identifying areas
where change is required to meet the future needs of the
industry.
Amongst the major conclusions reached in this Paper are:
- Automated on-line valuation products
provide a cost-effective and speedy service for a range of
applications, but their generic nature can mask significant value
variances by excluding critical information
- A Desktop Appraisal will often provide
a more detailed and accurate valuation than an on-line service and
provides an opportunity for dialogue between appraiser and client
which helps ensure that the resulting analysis is fit for
purpose
- The wide range of value opinions
provided by appraisers, even for the most liquid aircraft, requires
their customers to be conversant with the different methodologies
and assumptions that are offered
- In order to merit serious consideration
as value providers, appraisers must conform to the ISTAT
definitions and code of conduct for all of the relevant
constituents of the range of appraisals and valuation services that
they provide.
- Changes are required in the appraiser
community to keep pace with current levels of market activity, and
also to meet the standards of rigour, consistency and transparency
that will be demanded by new investors seeking to enter the sector
as aircraft complete the transition from alternative to mainstream
investment class.
- Key areas of focus for appraisers going
forward include: demonstrating track record of forecasting accuracy
in a verifiable way, increased diligence related to current values,
moving to cutting edge IP, becoming thought leaders in the
industry, expanding ISTAT accreditation, and greater collaboration
between customers and appraisers.
Dick Forsberg, Avolon’s Head of Strategy commented:
“This paper represents the latest issue in our analysis of key
issues impacting the aviation industry. Exploring the impact of
industry trends, such as appraisals and valuation, is central to
strategic decision making at Avolon. We have assessed one of the
industry’s most topical issues given the significant influence the
appraiser community wields within the industry. We hope that the
Paper will be helpful to financiers, investors and lessors when
choosing an appraiser, provide insight into the future of the
appraisal process and act as a catalyst for change.”
The full Discussion Paper can be downloaded from the Our
Thoughts section of the Avolon site at:
http://avolon.aero/our-thoughts/
ENDS
About Avolon
Headquartered in Ireland, with offices in the United States,
Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft
leasing and lease management services. Avolon is a wholly-owned,
indirect subsidiary of Bohai Leasing, a Chinese public company
listed on the Shenzhen Stock Exchange. As of December 31, 2015,
Avolon’s owned, managed and committed fleet, together with the Hong
Kong Aviation Capital fleet, comprised 418 aircraft with an average
owned aircraft age of 3.2 years. Together, Avolon, Bohai Leasing
and HNA Group is the world’s fourth largest aircraft leasing
business by asset value. See www.avolon.aero
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160218005901/en/
For AvolonJonathan NeilanT: +353 1 663 3686M: +353 86 231
4135avolon@fticonsulting.comorJennifer PetersT: +353 1 663
3684M:+353 87 178 7021avolon@fticonsulting.com
Amex Advance/Decline/Total Volume
Index Chart
From Sep 2024 to Oct 2024
Amex Advance/Decline/Total Volume
Index Chart
From Oct 2023 to Oct 2024