Aircraft are unique
With the many tens of thousands of airplanes and helicopters in the marketplace, there are no two that are identical, even if they are a single serial number apart, there will be differences. There can be two aircraft that came off the assembly line the same day with the same equipment and options that, once delivered to their respective buyers, begin the process of depreciation/appreciation at different rates.
The Variables
Depending on such factors as the geographic area of operations, potential corrosion issues, and yearly utilization, is it privately operated or is it used for commercial charter work has it been modified for a specific task or to achieve additional performance capabilities?
High-Value Items
Maintenance and avionics are two areas that can create very large differences in values of what to the casual observer might look like identical aircraft. Different avionics suites alone can change a value by hundreds of thousands of dollars in some instances. Times remaining on major components like engines, transmissions, and landing gear are other big-ticket items.
Why a Certified Aircraft Appraiser is important
Very quickly, two identical aircraft become unique when viewed through the eyes of an experienced certified aircraft appraiser who has the ability to consider the variables above and more when determining where a specific aircraft is placed within the marketplace.
An appraisal is not a guarantee that a particular aircraft will sell or could be purchased for the value expressed in a report. However, a well-researched and written aircraft appraisal report can be used in a number of ways during the sale or purchase of a particular aircraft.
For the Seller
A certified Aircraft Appraisal report can serve as the foundation of a seller’s asking price relative to the current market.
For the Buyer
It can provide detailed information on an aircraft that fits their search parameters and serves as the basis of a buyer’s offer.
Financial Regulator Compliance
Financial institutions rely on an appraisal to support and justify the value of the collateral they are loaning monies against.
An appraisal is an impartial, independent, and objective opinion of the value of an aircraft, prepared by experts considering the factors which make up the current behaviour of the used aircraft market. It is an opinion of value based on experience and repeated analysis of these factors. It is an opinion of value which can be substantiated and justified. It is an opinion of value made by a Certified, Recognized, Professional Aircraft Appraiser.
As part of your due diligence, you need to ask an aircraft appraiser the following questions and then verify their qualifications and accreditations, including their memberships in appropriate associations:
The Uniform Standards of Professional Appraisal Practice (USPAP) is the generally accepted standard for professional appraisal practice in the USA and Canada. USPAP contains all types of standards, including those for aircraft appraisers. USPAP promotes public trust by enforcing requirements for appraisers. USPAP appeared in 1987 by an appraisal profession committee. The 1989 Financial Institutions Reform Recovery and Enforcement Act (FIRREA) designates USPAP as the standard for professional appraiser associations and by dozens of governmental agencies. USPAP is slowly extending hegemony throughout the world as the standard of member practice.
Trend Tec Canada is a member in good standing of the Professional Aircraft Appraisal Organization (PAAO). We offer certified Uniform Standards of Professional Appraiser Practice compliant appraisals. Our senior certified aircraft appraiser Daniel J. Melanson undergoes yearly refresher courses provided by the PAAO to ensure the latest industry standards are adhered to.