Aircraft Valuation - Aviation Valuations
Aircraft valuation is a complex process that includes scrutiny of the aircraft’s diverse value points. There are many dynamics, from each aircraft’s unique status to the aviation industry impact in general, that influence the value of an aircraft; such as maintenance, engines, damage, cycle rate, exterior condition, interior condition, avionics, logbooks, regulations, market, etc. Understanding each value point and how it affects the aircraft in relation to the marketplace is paramount in aircraft valuations.
SAI brings together an unprecedented team who fully understand the many dynamic variables that affect the aviation industry, and ultimately, the aircraft value. SAI Valuations’ appraisers are accredited by the American Society of Appraisers. Additionally, SAI appraisal reports follow the designated USPAP standards for appraisals, which will give your value credibility with your intended user(s) and within the legal community. Visit Why Accreditation Matters to learn the importance of accreditation when selecting an appraiser. Whether a Turbine, Turbo Prop, Propeller or Helicopter type aircraft, the SAI professionals are dedicated to providing you with a comprehensive report and a rapid turnaround time.
For a free consultation, call 815-786-2826. Also, you can drop a note via web form from our CONTACT US page.
Valuation Purposes
• Obtain unbiased opinion of value
• Substantiate aircraft value for financial assessment or audit
• Safeguard against excessive tax assessments or capital gains
• Verify or identify a diminution in value in a damage claim
• Establish a basis for aircraft sale or acquisition
• Determine post retrofit or modification value
• Verify aircraft condition
• Distinguish value differences from one aircraft to another
Valuation Reports
» Opinion of Value
The opinion of Value provides a general opinion of the current “market value” of an aircraft. This product includes no market research, or general scrutiny of the overall specifications and maintenance status of the aircraft.
Additional Options: Residual Values, Forced Liquidation Value, Orderly Liquidation Value
» Desktop Appraisal
A Desktop Appraisal provides a “fair market value” based on specifications furnished by the client or an outside third party.
Additional Options: Residual Values, Forced Liquidation Value, Orderly Liquidation Value
» Audit & Appraisal Report
This appraisal product involves a full audit of the aircraft, aircraft flight logs, aircraft and engine maintenance records, and related FAA records. A current fair market value is established for the aircraft that is determined by its specific characteristics (i.e., total time, age, condition, modification status, etc.).
Additional Options: Residual Values, Forced Liquidation Value, Orderly Liquidation Value
» Audit & Appraisal with Extended Market Analysis Report
In addition to the Audit & Appraisal information, this report contains a review of the current market for a particular aircraft by class, along with a comparison against cohort aircraft.
Additional Options: Residual Values, Forced Liquidation Value, Orderly Liquidation Value
» Residual Value Analysis
This product focuses on estimating a “future fair market value,” for a designated aircraft type through a specified calendar time frame. The analysis is based on historical data and current indicators, which can also be adjusted for inflationary assumptions.
» Custom Reports
We will work with you to create new products or customize our existing products to meet your valuation needs.
Non-Valuation Reports
» Collateral Audit
This product involves a full physical audit of the specified collateral, along with its associated records. The object is to detail the overall condition of the collateral. There are no value representations associated with this product; nor should it be employed as a tool for determining the technical airworthiness or serviceability of the collateral.
» Collateral Verification Check
This product involves a cursory physical audit of the specified collateral and records. The sole purpose of this product is to verify the existence and general physical condition of the specified collateral.
» Diminution of Value Report
The Diminution of Value Report involves a physical inspection of the specified aircraft, a market assessment, and an appraisal. The work scope associated with the process involves a physical inspection of the aircraft to include all related equipment and the associated records, a complete review of the damage inflicted on the aircraft and the associated repairs, and a fair market value assessment of the aircraft. The end product is comprised of a detailed written report depicting the overall condition of the collateral, the full scope and type of damage that occurred, and a representation of any perceived diminution of value. Although there are value representations associated with this product, they should not be employed as tools for determining the technical airworthiness or serviceability of the collateral. The sole purpose of this product is to verify the extent of the damage, general physical condition of the specified collateral, and what, if any, potential there is for a diminution of value.
» Aircraft Market Analysis Report
This product involves an analysis of the market for a specified aircraft model. The work scope associated with this process involves a review of the market for the specific aircraft model and that specific market segment (i.e., large-cabin, long-range). The end product is comprised of a concise written report depicting the overall conditions of the market for the specified model of aircraft. There are no aircraft specific value representations associated with this product and it should not be employed as a tool for determining the value of the collateral. The sole purpose of this product is to identify and verify the general market conditions for the specified aircraft model.
» Market Snapshot Report
This product was developed to analyze the market as it exists for a specific make, model, and model year aircraft. It is a consulting product and not a valuation. The business aircraft market is dynamic – always changing due to various forces. The Market Snapshot Report describes what values the aircraft may realize at certain points in time. It also indicates, based on the snapshot date (and the market forces that exist on that date), what ask price values the aircraft could sustain (minus any brokerage fees or commissions), and what types of liquidation values could be expected throughout the year. There are potential future values expressed as well. The market itself is also explored along with cohort aircraft market statistics and sales history.
There are two types of Market Snapshot Reports: The Market Snapshot Report and the Defined Market Snapshot Report:
• The Market Snapshot Report considers an aircraft with all base equipment, all times at fleet standard, and
all components at mid-time.
• The Defined Market Snapshot Report contains a subject aircraft with specifications described by the client.
» Future Value Report
This product involves research and analysis of the current and projected market for a specified aircraft model. The work scope associated with this process involves an overview of the aircraft, an overview of the market segment, a short overview and description of competitive aircraft, and a comparison of cabin size, range, cost per seat mile, etc. There is a short description of our future value model and future value curves for the subject aircraft, along with competitive aircraft. This report also analyzes the dynamics that impact future values (i.e., days on market, percentage of fleet for sale, etc.).