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In the second article in our Aviation Finance Thought Leadership Series arising from our collaboration with David Yu - Finance Professor at New York University in Shanghai, David focuses on cross-border investing and financing specialising in real assets and aviation.

This article is an excerpt of the preface section of David’s upcoming book, due to be published by Palgrave Macmillan in October 2020, entitled “Aircraft Valuation and Leasing: Airplane Investments As An Asset Class”.

The world has been focused on the novel coronavirus 2019-nCoV (the ‘virus’ or ‘COVID-19’) since the beginning of 2020.  The virus has significantly impacted global economies, resulting in workforce and travel restrictions, supply chain and production disruptions and reduced demand and spending across many sectors. One consequence of the virus has been widespread restrictions on the ability of people to travel, socialise and leave their homes; resulting in an unprecedented decline in global air traffic. Global financial markets have reacted sharply to this pandemic, with concerns regarding the economic impact this may have on a global scale which is expected to be material for the airline sector, and by extension the aircraft leasing sector.

In this article David considers some of the impacts and responses to COVID-19 seen at each of the phases experienced to date in the virus lifecycle, as well as comparing the current COVID-19 shock with those experienced as a result of SARS, the GFC and finally he takes a preliminary outlook for the future. The article also includes video excerpts from a discussion with David which will provide you with deeper insights on the matters discussed.

Watch

David Yu, Finance Professor at New York University in Shanghai, in conversation with Killian Croke, lead audit and assurance partner, KPMG Aviation Finance.

Further reading