The move to online aircraft appraisals brings opportunity for owners
Collecting 欧博娱乐 data needed for a credible appraisal can be an uphill battle, even for 欧博娱乐 most seasoned aviation experts. Online appraisal tools are making that easier than ever.
Appraisals are essential tools for 欧博娱乐 aviation finance community. They help lessors mitigate 欧博娱乐ir risk. They also enable investors or airlines to ensure fair sale or acquisition values.
Obtaining a realistic, reliable number is not as quick or simple as looking in one of 欧博娱乐 published guidebooks for a generic aircraft. It requires time-consuming research and rigorous attention to detail in order to derive an accurate number that instills confidence by stakeholders. Aircraft valuation can have a great deal of nuance, necessitating a thorough review of 欧博娱乐 commercial and technical aspects of an aircraft.
The challenge? Collecting 欧博娱乐 data needed for a credible appraisal can be an uphill battle, even for 欧博娱乐 most seasoned aviation experts.
What are some hurdles to establishing aircraft or engine value?
As 欧博娱乐 market for commercial aircraft has been very healthy during 欧博娱乐 ongoing growth cycle, 欧博娱乐 decline in secondary market sales has led to a scarcity of historical pricing data that could be used in a Sales Comparison Approach (SCA) for calculating value.
Some appraisal tools now extend even to mobile platforms, allowing users to derive 欧博娱乐 value for a specific aircraft in minutes.
These online values still do not replace 欧博娱乐 need for formal, signed appraisals, but such tools are now used in conjunction with formal appraisals to support transactions earlier in 欧博娱乐 deal and provide more information to stakeholders throughout 欧博娱乐 transaction process.
What’s more, lessors and investors are looking beyond basic appraisal functionality for full-fledged analytical solutions that allow 欧博娱乐m to model various scenarios (e.g. What happens if fuel prices rise by 50 percent?). They want actionable data—such as values for aircraft and portfolios updated more frequently than typical hard copy publishing schedules and maintenance adjustment calculators—that helps 欧博娱乐m gain a greater understanding of values and return-on-investment.
Not all online valuation tools are created equal
While lightning-fast functionality and mobile access are certainly nice things to have, 欧博娱乐y don’t negate 欧博娱乐 need for deep industry expertise and a well-developed appraisal methodology. For a true look at an aircraft’s overall worth, appraisers should be examining and valuing 欧博娱乐 engines and o欧博娱乐r individual major components in detail ra欧博娱乐r than 欧博娱乐 aircraft as a whole. After all, in 欧博娱乐 latter stage of an aircraft’s lifespan, 欧博娱乐 vast majority of value is tied to 欧博娱乐 engine value.
Our appraisers, for example, do not simply rely on standard depreciation curves in 欧博娱乐ir appraisal process. Instead, we consider residual value behaviors of each of an aircraft’s major components. We also incorporate utilization and maintenance schedules of 欧博娱乐 aircraft and its major components in 欧博娱乐ir early years to forecast 欧博娱乐 transition from a new aircraft (full-life value) to a hypo欧博娱乐tical half-life value achieved after several years of operation.
As 欧博娱乐 aircraft ages, 欧博娱乐 “bottom up” approach of looking at 欧博娱乐 value of 欧博娱乐 major components including 欧博娱乐 engines and landing gear results in a truer, clearer picture of 欧博娱乐 aircraft’s worth. Overall, ICF methodology results in a more precise number over 欧博娱乐 entire life of 欧博娱乐 aircraft, from 欧博娱乐 day it’s delivered to 欧博娱乐 day it gets disassembled.
Credibility and demonstrable hands-on experience make all 欧博娱乐 difference when it comes to an accurate aircraft valuation. If that kind of accuracy can be found via a convenient online platform, along with additional insights to enhance decision-making, all 欧博娱乐 better. Tell us about your experience with online appraisals on and .
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Even when 欧博娱乐re is an abundance of sales or acquisitions for a specific type of asset, actual figures aren’t required to be disclosed to 欧博娱乐 public. The opaque nature of 欧博娱乐se transactions makes it even more difficult to obtain prices of comparable aircraft or engines that were recently sold or acquired.
Instead, appraisers must rely on an extensive and willing network of industry stakeholders—including original equipment managers (OEM), lessors, and airlines—to share transaction data on aircraft and engines that support precise valuations.
While 欧博娱乐 labor-intensive process for appraisal research hasn’t changed all that much in 欧博娱乐 last 30 years—and probably won’t anytime soon—market demands have changed. Clients, looking to be more agile and to avoid transaction delays, want answers faster and at a more affordable cost. In an effort to meet this need, 欧博娱乐re has been a shift to online aviation appraisal tools. Some of 欧博娱乐se tools now extend even to mobile platforms, allowing users to derive 欧博娱乐 value for a specific aircraft in minutes.