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COVID-19 triggers shift in largest airport exposures

3rd June 2020 - Author: Matt Sheehan

New data from risk management company Russell Group shows that the top 10 airports by exposure have changed as a result of COVID-19 restrictions.

Airports such as Heathrow, Paris CDG and Los Angeles have dropped out of the rankings due to a $50 billion increase in the value of grounded aircraft fleet.

According to Russell Group, Singapore Changi Airport has the highest aircraft value of $18.97 billion, a jump from the pre-pandemic value of $8.69 billion.

This is followed by Doha Airport, Qatar which has an aircraft value of $17.02 billion, a jump from $11.12 billion.

Additionally, Dubai International saw a rise in aircraft value from $15.22 billion to $16.62 billion, while Hong Kong International Airport moved from $10.01 billion to $16.36 billion.

The combined grounded aircraft value at these 10 airports is $136.01 billion, up from a pre-COVID figure of $81.26 billion.

“Our research, has revealed new insights into where the global aircraft fleet, which is valued at almost $1 trillion around, is currently located,” said Suki Basi, CEO of Russell Group. “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 Valley’,” Basi continued.

“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.”

These market figures are from Russell’s exposure management platform, ALPS Aerospace.

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