Our inflation rate views are at the macro level. i.e. we wouldn’t apply different rates to different aircraft. We produce all our future forecasts at a 0% constant rate of inflation and we currently take 2% as our baseline inflation rate assumption to apply to all assets but that sits alongside our 0%. We do limit the range of inflation rates that users can pick for our appraisals to between 0 and 3%, as outside 3% the assumptions we use to create our 0% future values wouldn’t be representative. We have different 0% future value projections for each aircraft type/value subseries, which is arguably how we might see the difference in the impact of inflation affecting different aircraft types in real terms.
Articles in this section
- How do you estimate spare engines
- Values Analyzer & Cabin Interior Assumptions
- Values Analyzer Lease Rate Assumptions
- How do I add Generic Monthly Lease Rate for both Future and Current Value in Portfolio or Group Valuation?
- What is a 'Desktop Valuation'?
- Can I look up historical valuations
- What does the First Run Engine specification adjuster indicate?
- How do your Future Values account for depreciation? Could you recommend a straight-line depreciation profile?
- Do airframe modifications such as missile defense systems and connectivity antenna domes affect aircraft values?
- Do you include taxes or VAT in your appraised values?