With over 62% of airplanes grounded in April, the value of the top 10 insured airports has shifted, said Suki Basi, managing director, Russell Group speaking to AM Best TV.
$50 Billion Increase in The Value of Grounded Aircraft Despite COVID-19 Restrictions
03 June 2020 | Blog Post
The top 10 airports by grounded aircraft exposure have changed as a result of the Covid-19 restrictions. As can be seen in the table below, the new top 10 doesn’t have the usual suspects such as Heathrow, Paris CDG and Los Angeles. This is because there has been a $50 billion increase in the value of grounded aircraft fleet at a new top 10 airports, despite COVID-19 restrictions, according to Russell Group.
Singapore Changi Airport has the highest aircraft value of $18,967,454,770, a jump from the pre-COVID-19 value of $8,685,030,000.
This is followed by Doha Airport, Qatar which has an aircraft value of $17,019,302,000, a jump from $11,122,900,000.
Dubai International saw a rise in aircraft value from $15,224,490,000 to $16,623,128,000.
Meanwhile, Hong Kong International Airport has seen a large jump from $10,0099,800,000 to $16,357,112,271.
The combined grounded aircraft value at these 10 airports is $136,073,111,433, a significant jump from the pre-COVID figure of $81,263,671,600.
These market figures are from ALPS Aerospace, Russell’s exposure management platform that supports aviation (re)insurers in managing their exposures to their (re)insurance portfolios.
Suki Basi, CEO of Russell Group commented on the figures: “Our research has revealed new insights into where the global aircraft fleet, which is valued at almost $1 trillion around, is currently located. This has revealed new exposure concentration for (re)insurers, similar to property catastrophe.
“Furthermore, what our current research is showing is that many of the grounded aircraft are located in places vulnerable to natural perils, such as the aircraft parked at Tulsa Airport in the middle of ‘Tornado Alley’.
So, we are publishing these figures today to inform aviation (re)insurers that whenever the so-called ‘return to flight’ commences, they will find themselves with larger exposure in locations that they hadn’t expected. ”.
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