Jetrader - January/February 2013 - 22

ISTAT Certiﬁed Appraisers

IAP Progress and Aircraft Economic Life
By Phil Seymour, Chairman, Board of Governors ISTAT International Appraisers’ Program President & Chief Operating Officer, IBA Group, Ltd. Whatever holidays you have recently celebrated or are about to celebrate, I wish you peaceful, prosperous and healthy holidays, and best wishes for 2013. develop more Asian, Australasian, South American, Middle East and African presence. I sincerely hope it isn’t the last conference slot that I am provided with — see you in Orlando, perhaps! old category. Is this a fundamental shift, or will the market soak up the supply? Will ﬁnancing of used aircraft recover? The two issues are linked of course. Most appraisers have their own view — ask them about it. Appraisers should not have a particular angle that they need to argue so our opinion may be useful. I hope that in future Jetrader articles from appraisers we will discuss various topical issues such as this. Geographic Spread of Appraisers (as at September 2012) Fellow/Senior
USA Europe Asia Australasia 11 4 1 1

Recent progress regarding the IAP is as follows:
1. By the time this article goes to press, the Appraisers handbook will have been updated. Jack Feir, the program Administrative Director has performed a great job in creating the latest edition with help from other members of the IBG. Whilst it is clearly aimed at the appraisers I would ask you all to go onto the ISTAT website to take a look at it — hit the appraisers tab and you will be able to look at it or download it. If you use the services of appraisers then please use it and if you have any ideas for its development let me know. It is an evolving document and not one that should gather dust or fall behind what is actually practiced. 2. We received budgetary approval to develop the next stage of the CDP (continuing development program) similar to some other professions. Points would be gained from attending speciﬁc conferences or sessions, such as manufacturer appraiser forums. We are now looking into the details as to how the program would need to be administered. The aim is to have the details ready for implementation around the annual ISTAT Americas event. 3. I was provided with a 15 minute slot at the ISTAT Europe event in Rome to provide delegates with an update as to the IAP and how the last ten years has seen a shift from a US centric program to a much more diverse global group. (see the table below) The trend continues and we are now a mostly U.S. and European entity — we still aim to

Areas of debate and topical issues:
I can’t seem to escape a day or two without the matter of aircraft economic life coming up. I don’t intend this to be an article of my own personal views. There seem to be several industry papers in circulation and there does not seem to be a consensus, nor any deﬁnitive evidence, that economic life is shortening. (Actually, that maybe a personal view.) However, many aircraft current market values are performing at below the base value. Even the most popular of narrow bodies show some pressure in terms of realisable cash prices for aircraft in the 6-12 year

Certiﬁed
18 10

Note: in 2001 only 1 senior appraiser and 5 certiﬁed were non-U.S. based

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Jetrader - January/February 2013

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