Aircraft Values… Planning for the future.
Recently, I had a conversation with a larger aircraft operator about what the best course of action was when it comes to changing out the fleet.
A. Do you trade into the Manufacture?
B. Do you try and sell in the retail market?
A few years ago (i.e. 2013, 2014, etc.) one could have made a relatively strong case for the first option, especially given how values in some markets were declining at 12%-15% per annum.
Now Things have changed. It appears… Pre-owned inventory levels are constricting to levels, in some cases, not seen since pre-2oo8. But this doesn’t automatically mean values have begun to increase. No, in fact values continue to decline across markets, albeit at a far more tempered pace of 5%-10% per annum.
So what does this mean for you, your company and your aircraft?
It means you have to have an open mind about your options – There are several factors that can get diluted in their importance, when your trade-in compared with the retail market that you need to be aware of:
6. Paint condition (age) / Scheme
5. Interior Condition (age) / Layout
4. Enrollment on maintenance programs (i.e. MSP, RRCC, FalconCare, etc.)
3. Avionics (i.e. 2020 Compliance items ADS-B Out, TCAS 7.1)
2. Inspection Status (“C” Check, 72 Mo insp., Landing Gear Overhaul, etc.)
1. Pricing, or rather future pricing and understanding how trades both past and pending can affect your aircrafts value and future market trends.
With earning season right around the corner knowing the value of your aircraft is always good for tax and insurance purposes. But if a change is planned you have to know more! You need to know the market.
Therefore, if a change of plane is on the horizon consider speaking with U.S. Aircraft Sales and learn how market conditions could impact your plans and how you might need to reshape your approach, using our global perspective.