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For Asia's airlines, financial strife is only just beginning

Next three months critical as risk tolerance deadlines approach

| Southeast Asia
Idle airplanes on the tarmac of Suvarnabhumi Airport in Bangkok, pictured on May 25: many airlines have raised funds by mortgaging all available assets at a record pace.   © Reuters

David Yu is a finance professor at New York University in Shanghai who specializes in cross-border financing and aviation finance and leasing. He is author of "Aircraft Valuation: Airplane Investments as an Asset Class."

The business model for most airline operators is similar to the seasonal life cycle of bears: store the profits from the peak travel periods from spring through to fall to tide them over the winter when less people travel.

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