ISTAT Jetrader - Summer 2020 - 36

ISTAT Certified
Appraisers: Valuing
Aircraft During
Market Disruptions
by Bryson Monteleone, Chair,
ISTAT Appraisers Program
Board of Governors

I

n light of the current unprecedented environment, the
aviation community and, in particular, the aviation
financing community, continue to rely on appraised
values, but with increased scrutiny. This article is
meant as guide to provide ISTAT members a better
understanding of the mechanics and philosophy
behind the valuation process of ISTAT Certified
Appraisers and how specifics of the aircraft market, as well
as individual appraiser methodologies, contribute to a variety
of opinions.

Historical Precedents
The aviation industry is in extraordinary times. As we look to
the past to help guide us through today and the future, we are
reminded of challenging times the industry has endured. While
not a perfect determinant of current challenges, this history
allows us to set some indicative guardrails for the severity
of the current market and its potential for recovery. Aircraft
value depreciation forecasts were challenged immensely after
9/11 and the global financial crisis, as market circumstances
36

* T H E O F F I C I A L P U B L I C AT I O N O F I S TAT

left quite a few aircraft
economically impaired
for years to come, causing
financial pain for many in our industry. ISTAT Certified
Appraisers are using these lessons learned to respond to the
current environment.
This crisis may reshape the aviation landscape forever
and is undoubtedly forcing all of us in the aviation finance
community to reassess how to best go forward. Industry
methodologies and models will be challenged, as they should
be. No player in the aviation industry should come out of
this crisis without an inward-looking audit of their own
assumptions and supporting philosophies. For ISTAT Certified
Appraisers, this might include a view toward depreciation,
economic life, and other weighing factors that underpin views
toward Base and Current Market Values.

Individual Methodologies
Appraised values are the appraiser's opinion of the value
of an aircraft or other asset. The opinion is constructed



ISTAT Jetrader - Summer 2020

Table of Contents for the Digital Edition of ISTAT Jetrader - Summer 2020

ISTAT Jetrader - Summer 2020
From the President
News & Events
Perspectives: Q&A With Nils Hallerstrom
Live from Austin
Fixing the Leaky Pipeline
ISTAT Certified Appraisers: Valuing Aircraft During Market Disruptions
Aviation History: The Avro Canada Arrow
A Tribute to Jack B. Feir
Appraisal: A330 Freighters and Boeing 777F
ISTAT Foundation: Thinking Globally
Advertiser Index
ISTAT Jetrader - Summer 2020 - Intro
ISTAT Jetrader - Summer 2020 - ISTAT Jetrader - Summer 2020
ISTAT Jetrader - Summer 2020 - Cover2
ISTAT Jetrader - Summer 2020 - 1
ISTAT Jetrader - Summer 2020 - From the President
ISTAT Jetrader - Summer 2020 - 3
ISTAT Jetrader - Summer 2020 - 4
ISTAT Jetrader - Summer 2020 - 5
ISTAT Jetrader - Summer 2020 - 6
ISTAT Jetrader - Summer 2020 - 7
ISTAT Jetrader - Summer 2020 - News & Events
ISTAT Jetrader - Summer 2020 - 9
ISTAT Jetrader - Summer 2020 - 10
ISTAT Jetrader - Summer 2020 - 11
ISTAT Jetrader - Summer 2020 - Perspectives: Q&A With Nils Hallerstrom
ISTAT Jetrader - Summer 2020 - 13
ISTAT Jetrader - Summer 2020 - 14
ISTAT Jetrader - Summer 2020 - 15
ISTAT Jetrader - Summer 2020 - Live from Austin
ISTAT Jetrader - Summer 2020 - 17
ISTAT Jetrader - Summer 2020 - 18
ISTAT Jetrader - Summer 2020 - 19
ISTAT Jetrader - Summer 2020 - 20
ISTAT Jetrader - Summer 2020 - 21
ISTAT Jetrader - Summer 2020 - 22
ISTAT Jetrader - Summer 2020 - 23
ISTAT Jetrader - Summer 2020 - 24
ISTAT Jetrader - Summer 2020 - 25
ISTAT Jetrader - Summer 2020 - 26
ISTAT Jetrader - Summer 2020 - 27
ISTAT Jetrader - Summer 2020 - 28
ISTAT Jetrader - Summer 2020 - 29
ISTAT Jetrader - Summer 2020 - Fixing the Leaky Pipeline
ISTAT Jetrader - Summer 2020 - 31
ISTAT Jetrader - Summer 2020 - 32
ISTAT Jetrader - Summer 2020 - 33
ISTAT Jetrader - Summer 2020 - 34
ISTAT Jetrader - Summer 2020 - 35
ISTAT Jetrader - Summer 2020 - ISTAT Certified Appraisers: Valuing Aircraft During Market Disruptions
ISTAT Jetrader - Summer 2020 - 37
ISTAT Jetrader - Summer 2020 - 38
ISTAT Jetrader - Summer 2020 - 39
ISTAT Jetrader - Summer 2020 - Aviation History: The Avro Canada Arrow
ISTAT Jetrader - Summer 2020 - 41
ISTAT Jetrader - Summer 2020 - 42
ISTAT Jetrader - Summer 2020 - 43
ISTAT Jetrader - Summer 2020 - 44
ISTAT Jetrader - Summer 2020 - 45
ISTAT Jetrader - Summer 2020 - A Tribute to Jack B. Feir
ISTAT Jetrader - Summer 2020 - 47
ISTAT Jetrader - Summer 2020 - Appraisal: A330 Freighters and Boeing 777F
ISTAT Jetrader - Summer 2020 - 49
ISTAT Jetrader - Summer 2020 - 50
ISTAT Jetrader - Summer 2020 - 51
ISTAT Jetrader - Summer 2020 - 52
ISTAT Jetrader - Summer 2020 - 53
ISTAT Jetrader - Summer 2020 - ISTAT Foundation: Thinking Globally
ISTAT Jetrader - Summer 2020 - 55
ISTAT Jetrader - Summer 2020 - Advertiser Index
ISTAT Jetrader - Summer 2020 - Cover3
ISTAT Jetrader - Summer 2020 - Cover4
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