40 Years of Appraising
It’s safe to say that once you hit 40 years of age, certain realities set in. You are as likely to injure yourself with a strong sneeze as you are riding a dirt bike, although the nature and probably the severity of the injury will vary. Waking up with random aches and pains becomes a more regular occurrence — and may not be preceded by a long \ evening at the bar post-gala dinner at ISTAT Americas. When I was a teenager, and clearly possessed of less wisdom, 40 was old.
For many people, hitting age 40 is a major milestone — although, these days, reaching 50 or 60 seems more significant. But given advances in medicine and a greater focus on wellness, hitting 40 seems routine. One thing is certain, going beyond 40 and managing the “aging process” requires ongoing evaluation, care and maintenance.
The ISTAT Appraisers Programs (IAP) turned 40 in 2024. Given how much attention has been paid to ISTAT as a whole reaching this milestone, I thought it would be valuable to look back on the program as well as to look to the future.
ISTAT Certified Senior Appraisers Doug Kelly (left), senior vice president of valuations at Avitas, and Ameya Gore, chief technical officer for digital at Acumen, present during “ISTAT Appraising – An Introduction” at ISTAT Americas in Austin in 2024.
I passed the Appraiser exam in 2006, followed by the Senior exam in 2016, so my history with the IAP only spans the last 20 years. Given my lack of experience with the IAP’s first 20 years, I thought it would be valuable to refer to John F. Keitz’s Appraiser Chairman’s Column from the December 2003/January 2004 issue of Jetrader. Keitz’s column shared a lot of early history on the program, and it is helpful to reproduce some of it here.
The origin of what would become the IAP got a nice hand from Uncle Sam. As Keitz discusses: “Much of the appraisal business, as we know it today, started in the early 1980s. … Most of us knew then, as we know now, that nobody knew values as well as the people who were active in the market buying and selling aircraft. But then a change in government regulations in the United States made it a requirement that one get an ‘independent’ appraisal to justify any of the benefits, such as tax savings, from a transaction, particularly a lease transaction.”
Those early days featured a far lower level of technology than we have today:
“Can you believe that there was no Microsoft Word or cellphones? Computers and fax machines existed but were rare. While there were some memory-capable machines, most of our reports were typed on a typewriter. If you wanted a computer to do something, you punched data on cards, went to a service bureau and came back the next day for your output. Computer printouts of maintenance records were not common, and ‘inspecting’ the aircraft records for an appraisal meant trying to read someone’s writing on a dirty old work card.”
Since early 2004 when Keitz’s column was published, the IAP has grown — now comprising 100 Certified Appraisers of all levels plus around 40 candidates currently progressing through the program. We’ve become more diverse geographically, although still heavily concentrated in North America and Europe. The ranks of IAP membership in the APAC region are growing, which is valuable given the anticipated growth in commercial aviation in these regions over the next 20 years. The IAP has also progressed on the diversity, equity and inclusion (DEI) front. By the end of 2004, there were two female Certified Appraisers. As more women have entered commercial aviation and joined the ranks of ISTAT, the IAP has also diversified reflecting these trends.
As the IAP has matured, the ISTAT Appraisers Program Board of Governors (IBG) has undertaken several initiatives to ensure the program remains relevant, reflects changes in our industry and continues to be the gold standard of commercial aircraft appraisal. This is what I like to call the care and maintenance of the IAP.
Over the last several years, initiatives to review and update the value and technical definitions in the Appraisers Handbook have been undertaken. Olga Razzhivina, supported by a task force of IAP members, led the revision of many of our value definitions to ensure they reflect current standards and realities of our industry. This was completed in 2023. David Rushe is currently leading a review of the technical definitions in the Appraiser Handbook, supported by several of the members of the IBG. This will be completed later in 2025.
Successfully completing a degree or certification after age 40 is a challenge. Cramming the night before a test may have worked at university, but it’s not a recommended process for academic success. We have recognized the need for more robust continuing education. Gone are the days when Appraisers would show up at the continuing education session at the U.S. conference, sign their name on the attendance sheet and listen to a marketing pitch from an OEM to get their annual continuing education credits.
The Appraisers Panel from ISTAT Americas in 2019, from left: Justine Fisher, Geuric Dechavanne, Kimberly Higgins Bergin, Jeff Lewis, John Mowry and Lindsey Webster.
After looking at other professional standards organizations’ continuing education requirements, the IAP created a structure for continuing education that obliges Appraisers to stay informed about the industry but also incentivizes them to support the program through service to the Appraiser community. As we move into the IAP’s next 40 years, we’re going to continue to care for and maintain the program.
Perspectives From Three Appraisers
David Griffin
ISTAT Certified Appraiser
Vice President of Strategic & Market Analysis, SMBC Aviation Capital
What attracts you to be an ISTAT Certified Appraiser?
Within the aviation industry, the IAP is the preeminent qualification for those who value aircraft. The journey from candidate to certified is in itself interesting, as it varies from getting “hands on the metal” as part of the aircraft inspection requirement to financial analysis to macroeconomics and everything else in between.
How fundamental is the ISTAT certification to you and your professional career?
As it is a professional designation rather than a training program, it is a validation of your abilities and knowledge. It has certainly helped my career when moving from an appraisal firm to a lessor, as the certification carries weight.
What ambitions do you have as an Appraiser?
As transactions are becoming more esoteric and thus more complex to assign a value to, from an Appraiser perspective, the goal is to keep up with these new structures and how they can be normalized into the ISTAT definition of a value.
What do you like most about being an IAP member?
It is a talented and open community and, while growing, is still small enough that members can get to know each other quite well. The ConEd meetings are valuable to promote best appraisal practices and provide a forum for robust debate.
Alice Gondry
ISTAT Certified Senior Appraiser
Director of Aviation Research, Global Aviation Finance Office, MUFG Bank Ltd.
What attracts you to be an ISTAT Certified Senior Appraiser?
The ISTAT Senior Appraiser certification is a qualification recognized worldwide, which attests to one’s level of competency and expertise in the art of appraisal practice. I was highly motivated to sit the examination so as to elevate my profile in the aviation finance community, but also as a testament to my commitment to the IAP and the appraiser profession. Progressing from Certified to Senior, the qualification is more eminent and validates my tenure in the field.
How fundamental is the ISTAT certification to you and your professional career?
The certification adds gravitas to my professional experience and competencies. An Appraiser certification was a prerequisite for my current role. The ISTAT certification has been key in my profile being recognized in the industry. MUFG is the only bank with an ISTA Certified Senior Appraiser in its ranks, which is a testament to the wide breadth of deep in-house expertise, allowing us to look at most transactions holistically.
What ambitions do you have as a Senior Appraiser?
As a Senior Appraiser, I am keen to socialize the greater aviation industry with the methodology and ethics of appraisal practice, cast a light on the role of appraisals as a key element in the process of aircraft trading, and be an advocate for the key role Appraisers play in the aviation ecosystem to emulate further interest in the space. While it is a somewhat niche occupation, it is also very engaging, exciting and rewarding.
What do you like most about being an IAP member?
It is great to keep engaged with fellow Appraisers and partake as a collective in educational sessions, which are highly valuable in keeping current with key market trends. It is a great networking opportunity, with connections to MROs, OEMs, airlines, lessors and rating agencies. It is a great way to be involved with the new and upcoming generations of Appraisers and overall be an active participant in ensuring the perennity of the profession and its community.
Jian Zhu
ISTAT Certified Appraiser
Engagement Manager, Alton Aviation Consultancy
What attracts you to be an ISTAT Certified Appraiser?
Aircraft valuation combines my passion for aviation and my strength in modeling and quantitative analysis. Since the very beginning of my career when I was exposed to aircraft investment, I have wanted to understand more about aircraft values and become a Certified Appraiser. ISTAT is the most reputable organization in the industry for appraiser certification; hence, I had set a goal of becoming accredited by ISTAT very early on in my career.
How fundamental is the ISTAT certification to you and your professional career?
As an adviser focused on the aviation finance and leasing markets, I’ve been privileged to advise many clients on individual aircraft transactions, portfolio acquisitions and whole leasing enterprise M&A activities. ISTAT certification brings significant credentials that our clients value. Only a limited number of Appraisers have been accredited by ISTAT, and among these, only a few are based in the Asia-Pacific region as I am, and only a few are women globally. I stand at the intersection and am honored to be the first female Appraiser certified by ISTAT in Asia. In addition to the credentials, by going through the rigorous certification process, I strengthened my knowledge and understanding of aircraft assets and valuation approaches.
What ambitions do you have as an Appraiser?
As an Appraiser, it’s very exciting to be involved in major industry transactions and support large-scale merger and acquisition transactions and associated financings, sometimes involving the largest global aircraft lessors. Also, as one of the very few Certified Appraisers in Asia, where the aviation investment market is still developing, I enjoy supporting more industry participants in this part of the world to understand aircraft appraisal and aircraft investing more broadly. I would also like to help young professionals who are interested in becoming ISTAT-certified. We can have a few more Appraisers from Asia given the rapidly growing market in this region!
What do you like most about being an IAP member?
Meeting and getting to know fellow appraisers during ISTAT ConEd sessions, OEM briefings and other industry events is most enjoyable. It’s still a fairly small group of people, so it’s very easy to build close connections, discuss topics that we are all passionate about and learn from each other!
All ISTAT ONLINE OFFERINGS