ISTAT News | Wednesday, November 4, 2020
ISTAT Appraisers Share Updated Guidance on COVID-19
Dear ISTAT Members,
As always, I hope this finds you, your families, colleagues and friends well and safe.
As a follow-up to our April survey, and in anticipation of year-end activities, the ISTAT Appraisers Program (IAP) conducted our last survey for 2020 of program member firms in order to provide another set of guidance on aircraft valuation markets, trends and appraiser activities. Similar to our last survey, the main goal of this exercise is to allow for greater visibility and transparency on how best to unpack the information you receive from the appraisal community and how best to use it for your own analysis.
The survey responses were captured during the first few weeks of October and are a point in time snapshot. It is important to note that the results are purely for informational purposes, and are being provided as high-level guidance which should not be considered definitive in nature. Given the unprecedented times, we expect the market to be and will remain fluid for the foreseeable future.
We queried each firm as to its respective thoughts on specific aircraft types and how this challenging market might influence both Base and Market Values overall. Charts were created highlighting impacts on Market Values and although not exhaustive for all types, they do highlight those types that would be of the most interest, and where we as an industry share the greatest current exposure. The summary of responses may be found here.
Summary of Responses
While we did our best to provide an “apples-to-apples” comparison of appraiser guidance - this is usually easier said than done. As ISTAT does not prescribe one single methodology, the approach by each firm is done individually and baselines will always be different. As with very challenging markets, the valuation process is an evolution over time and an intricate analysis of trends and data points overlaid by historical precedent, amongst other metrics.
We have included both the current and previous survey results for each firm and always recommend a discussion with your ISTAT Certified Appraiser to allow for a more comprehensive dialogue on specific aircraft types, years of build and maintenance status.
Should you have any questions about this survey or the ISTAT Appraisers Program, please do not hesitate to contact the IAP Executive Director, Jeff Straebler, at firstname.lastname@example.org.
Chair, ISTAT Appraisers Program
NOTE: This information is intended to be for the use of ISTAT members only. Any disclosure, reproduction, distribution or other use of this information or any attachments by an individual or entity without the express written consent of the ISTAT Appraisers Program is prohibited. ISTAT does not endorse firms and/or services provided by the member firms listed.