Abstract
The aircraft and aviation finance industry has seen large growth along with the overall aviation industry since the 1950s. It has developed from US- and European-centric origins to a more global and dynamic industry with many factors affecting the overall development. With regard to global growth, emerging markets stand out especially those of China and Asia. There has been tremendous growth in China, which has seen significant increases in all aspects of aviation financings, cross-border investment, and leasing activity. Overall, aviation finance is now a significant industry where global new aircraft deliveries worth well in excess of $126 billion are being invested annually in addition to investments in the secondary markets (Boeing Capital Corporation 2017).
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Bibliography
Ang, J., & Peterson, P. P. (1984). The leasing puzzle. The Journal of Finance, 39(4), 1055–1065.
Ascend. (2017). Yearly Operating Lease Percentage as of September 14. Retrieved from: www.flightglobal.com
Bazargan, M., & Hartman, J. (2012). Aircraft replacement strategy: Model and analysis. Journal of Air Transport Management, 25, 26–29.
Bellalah, M., THEMA, & CEREG. (2002). Valuing lease contracts under incomplete information: A real-options approach. The Engineering Economist, 47(2), 194–212.
Boeing Capital Corporation. (2017). Current Market Finance Outlook 2017. Retrieved from Seattle, WA: www.boeing.com/resources/boeingdotcom/company/capital/pdf/2017_BCC_market_report.pdf
Bowman, R. G. (1980). The debt equivalence of leases: An empirical investigation. Accounting Review, 55, 237–253.
Chen, W.-T., Huang, K., & Ardiansyah, M. N. (2018). A mathematical programming model for aircraft leasing decisions. Journal of Air Transport Management, 69, 15–25.
Clarke, J.-P., Miller, B., & Protz, J. (2003). An options-based analysis of the large aircraft market. Paper presented at the AIAA/ICAS International Air and Space Symposium and Exposition, Daytona Ohio.
Edwards, J. S., & Mayer, C. P. (1991). Leasing, taxes, and the cost of capital. Journal of Public Economics, 44(2), 173–197.
Eisfeldt, A. L., & Rampini, A. A. (2008). Leasing, ability to repossess, and debt capacity. The Review of Financial Studies, 22(4), 1621–1657.
Ezzell, J. R., & Vora, P. P. (2001). Leasing versus purchasing: Direct evidence on a corporation’s motivations for leasing and consequences of leasing. The Quarterly Review of Economics and Finance, 41(1), 33-47.
Finucane, T. J. (1988). Some empirical evidence on the use of financial leases. Journal of Financial Research, 11(4), 321–333.
Graham, J. R., Lemmon, M. L., & Schallheim, J. S. (1998). Debt, leases, taxes, and the endogeneity of corporate tax status. The Journal of Finance, 53(1), 131–162.
Handa, P. (1991). An economic analysis of leasebacks. Review of Quantitative Finance and Accounting, 1(2), 177–189.
Hsu, C.-I., Li, H.-C., Liu, S.-M., & Chao, C.-C. (2011). Aircraft replacement scheduling: a dynamic programming approach. Transportation research part E: logistics and transportation review, 47(1), 41–60.
Krahan, J. P., & Meran, G. (1987). Why leasing. An Introduction to Comparative Contractual Analysis. Berlin: Bamberg, G. & Spremann, K., eds.
Krishnan, V. S., & Moyer, R. C. (1994). Bankruptcy costs and the financial leasing decision. Financial Management, 31–42.
Lease, R. C., McConnell, J. J., & Schallheim, J. S. (1990). Realized returns and the default and prepayment experience of financial leasing contracts. Financial Management, 11–20.
Lewellen, W. G., Long, M. S., & McConnell, J. J. (1976). Asset leasing in competitive capital markets. The Journal of Finance, 31(3), 787–798.
Lewis, C. M., & Schallheim, J. S. (1992). Are debt and leases substitutes? Journal of Financial and Quantitative Analysis, 27(4), 497–511.
Lim, S. C., Mann, S. C., & Mihov, V. T. (2017). Do operating leases expand credit capacity? Evidence from borrowing costs and credit ratings. Journal of Corporate Finance, 42, 100–114.
Roenfeldt, R. L., & Osteryoung, J. S. (1973). Analysis of financial leases. Financial Management, 74–87.
Schallheim, J., Wells, K., & Whitby, R. J. (2013). Do leases expand debt capacity? Journal of Corporate Finance, 23, 368–381.
Schallheim, J. S., & McConnell, J. (1985). A model for the determination of “fair” premiums on lease cancellation insurance policies. The Journal of Finance, 40(5), 1439–1457.
Sharpe, S. A., & Nguyen, H. H. (1995). Capital market imperfections and the incentive to lease. Journal of Financial Economics, 39(2), 271–294.
Slovin, M. B., Sushka, M. E., & Polonchek, J. A. (1990). Corporate Sale and Leasebacks and Shareholder Wealth. The Journal of Finance, 45(1), 289–299.
Smith, C. W., & Wakeman, L. (1985). Determinants of corporate leasing policy. The Journal of Finance, 40(3), 895–908.
Stonier, J. (1999). Airline long-term planning under uncertainty. Real Options and Business Strategy, Lenos Trigeorgis ed., Risk Books.
Stonier, J. (2001). Airline fleet planning, financing, and hedging decisions under conditions of uncertainty. Handbook of Airline Strategy, McGraw-Hill.
Stonier, J. (1998). Marketing From A Manufacturer’s Perspective: Issues In Quantifying The Economic Benefits Of New Aircraft, And Making The Correct Financing Decision. Handbook Of Airline Marketing.
Vasigh, B., Fleming, K., & Humphreys, B. (2014). Foundations of airline finance: Methodology and practice: Routledge.
Wyman, H. E. (1973). Financial lease evaluation under conditions of uncertainty. The Accounting Review, 48(3), 489–493.
Yan, A. (2006). Leasing and debt financing: substitutes or complements? Journal of Financial and Quantitative Analysis, 41(3), 709–731.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2020 The Author(s)
About this chapter
Cite this chapter
Yu, D. (2020). Introduction. In: Aircraft Valuation. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-15-6743-8_1
Download citation
DOI: https://doi.org/10.1007/978-981-15-6743-8_1
Published:
Publisher Name: Palgrave Macmillan, Singapore
Print ISBN: 978-981-15-6742-1
Online ISBN: 978-981-15-6743-8
eBook Packages: HistoryHistory (R0)