Jet Value and MaintenanceMay 28, 2015
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What is the impact of an airplane's maintenance status on its overall value?
One of the fundamental factors to be considered when valuing an aircraft is the condition of its maintenance status. There can sometimes be wide disparity between appraisals for similarly aged aircraft that can often be explained by differences in their maintenance condition.
Whenever possible it is useful to quantify the maintenance status of aircraft in monetary terms, given the strong relationship that exists between the cost of conducting maintenance and value enhancement.
The majority of aircraft appraisers and advisors generally quantify the value of an aircraft’s maintenance status through analysis of certain, high cost major maintenance events. These events generally consist of:
- Airframe structural inspection
- Engine performance restoration & replacement
- Landing gear overhaul
- APU performance restoration
Maintenance value can also be heavily influenced by market forces. In conditions, where aircraft values command premium prices, prospective buyers are more willing to consider aircraft in lesser maintenance condition. Conversely, buyers are reluctant to expend cash on aircraft with lower levels of maintenance status.
If you are in the market to buy or sell an aircraft, our experts are available to assist you with maintenance status evaluation and value appraisal. Call our office anytime to schedule an appointment at 480-998-8989.