Aicraft for get-off issues

Client

Public leasing company

Objective

To determine, for get-off aircraft purposes, the market value of 10 aircraft including 6 airplanes and 4 helicopters.

Approach

Members of Swiss Appraisal's Aircraft Valuation Team were selected based on their specific experience with the valuation objects. The team based their calculations on:

• visual inspections, creating a comprehensive description of each aircraft (fuselage, transparency, foil/fins, power generator, wheel trains, cabin, cockpit, fitting out, etc.);
• maintenance analysis appraisal reports provided by surveyors specialized in different types of aircraft, including information on operational and qualitative characteristics, check types, performance history, etc.;
• market analyses of aircraft and best use analysis.

Use of an income approach based on leasing payments can lead to an unreliable result. The cost approach requires a separate assessment of different parts of a plane, and a different wear out rate. Considering the above, as well as a significant number of similar aircraft for sale on the open market, valuation team concluded that the income and the cost approach were unreliable. A sales comparison approach proved best.

Comparable object data research allowed Swiss Appraisal to build a correlative model based on life cycle, mid annual flight hours, engine operating time, and propeller hours since placed in service. Before using the regression model, bargaining over a price, currency rate, location, adjustments, and VAT assumptions were made.

Results

Using the correlation-regressive analysis of the valuation objects, and the calculations defined in the sales comparative approach, Swiss Appraisal's team determined the market value of the 10 aircraft. A detailed Valuation Report was written containing all data and calculations used, along with precise explanations of our approach and methodologies.



Return to the list of projects