ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Opinion

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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more