GRA provides the comprehensive services that are required for the evaluation of the economic and financial prospects of airlines, airports, suppliers, aerospace manufacturers and air traffic control facilities.
The firm supported the Treasury Department’s Air Transportation Stabilization Board in evaluating airline loan guarantee applications after the September 11 terrorist attacks.
Because the airline industry is cyclical, financial institutions face considerable challenges in making prudent long‑term commitments.
In the rapidly changing airline market, financial institutions have become increasingly concerned about credit-worthiness. GRA has pioneered the analysis of airline finance and operations designed to anticipate credit problems before they become acute. GRA developed a model that applies advanced statistical techniques to a widely accepted bankruptcy model in order to anticipate financial stress for airlines.
There are three important developments facing the airline industry that may affect the values of assets that have been financed:
- Capital constraints
- Global consolidation
- More stringent noise and emission regulations
GRA helps financial institutions anticipate the effects of industry developments by assessing the prospects for individual carriers in a rapidly changing economic environment, and by providing the capabilities to support transaction structuring and pricing. These assessments rely on evaluation of each carrier’s assets (including fleets, airport slots and other facilities, market positions, labor status, hubs) and the carrier’s strategies for applying them. GRA can perform analysis of individual aircraft, individual airlines, or an entire portfolio, in each case providing the framework for a sound strategic evaluation of credit and asset risk. GRA is a recognized authority on the valuation of airline assets, including, aircraft, computer reservation systems, and new aircraft delivery positions. GRA provides its clients with market, going concern and liquidation values. The firm also has extensive experience in valuing bankrupt companies.