Having someone to represent your interests is a must in today’s marketplace. The average age of the general aviation fleet is 20+ years. There are a large number of potential pitfalls for an inexperienced purchaser to navigate. And, in addition to being inexperienced many buyers can’t afford the time away from their work that is required to make a successful purchase. We represent buyers from the opening of escrow, through the pre buy inspection, test flights and finally the aircraft acceptance. We help staff and operate the aircraft if needed.
Seller’s Agent Services
We represent seller’s in any type of aircraft sale from the opening of escrow, through the pre-buy inspection, test flights and finally the aircraft delivery. Again, we help staff and operate the aircraft if needed.
Aviation Market Insight
Our group helps clients gain corporate aviation insight so they can make smart, informed decisions before they engage in aircraft acquisitions, financing or management.
In an effort to provide continued post-purchase services to our customers, we offer cost analysis preparation as well as aircraft management consulting. From the hiring of pilots to the hangaring and maintenance of aircraft, we can help.
USPAP Certified Appraisals
The Uniform Standard of Professional Appraisal Practices is a standard set by the government after the Savings and Loan implosion in 1987, which outlines stringent reporting requirements and ethics declarations that must be made prior to accepting an assignment. These requirements apply to aircraft appraisals undergoing FDIC backed financing and government value audits. USPAP calls for the highest standards of professional ethics. Only an appraiser with specialized knowledge and experience may conduct a USPAP endorsed aircraft appraisal. That person must also have completed mandated course work and testing. In addition, a study of the comparable aircraft sales is required to support value conclusions. The standards set out stringent requirements for the development and communication of such appraisals. USPAP represents the generally accepted and recognized standards of aircraft appraisal practice in the finance and government arena.
Used generally for trust settlements, divorces and most litigation, a certified airplane appraisal is a detailed and accurate assessment of an aircraft’s market value based on a comprehensive examination of the aircraft’s present physical condition and past flight history. The only true way to determine an aircraft’s market value is to perform a detailed inspection of the aircraft interior and exterior, as well as those books and records associated with its operation and maintenance. The exterior is inspected for damage, corrosion, loose or missing fasteners, paint condition, airframe condition, oil leaks and tire condition. The interior of the aircraft is inspected including the cockpit, passenger area, and baggage compartment. The condition of seats, carpets, head and side panels are noted. The books and records are scanned for service bulletin compliance, airworthiness directives (AD’s) and damage history.
Desktop Appraisals (Market Valuation)
This type of appraisal is used to inform an aircraft owner, buyer, or seller of the value of a certain aircraft. This process is more accurate than a Book Value since the “actual condition” of the aircraft will be considered. It has a substantially lower cost than a Certified Appraisal because the appraiser does not inspect the aircraft. The client is responsible for providing and verifying the accuracy of the data. A Market Analysis has limited usefulness and cannot be used for obtaining financing or for tax and legal disputes. It is however, an inexpensive way to develop a fair estimate of market value based on aircraft condition. Since the appraiser does not actually inspect the aircraft, he cannot certify its value.
Diminution of Value
Diminution in value is a term used when calculating damages in a legal dispute, and describes a measure of value lost due to a circumstance or set of circumstances that caused the loss. Generally, in the case of aircraft damage diminution, it could include the cost to repair the aircraft, the loss of revenue that would have been generated during its down time. It would also include the costs of seeking alternate transportation for the owner, monthly payments on the aircraft, hangar and insurance that cannot be avoided during downtime. Specifically, it measures the value of something before and after the damage event. It is the lost value in order to calculatecompensatory damages. Our staff has been called upon to assist in a number of these situations.
Expert Witness Testimony
There are times that arise when certain parties cannot resolve their differences through negotiation and litigation ensues. During that process we have tasked to provide all facets of the above valuation services through written and oral testimony in deposition and in court. Retained by either the plaintiff or the defendant, the appraiser is mandated to make honest and ethical evaluations of aircraft value, damage and diminution. The appraiser is then required to undergo a cross examination by the opposition in defense of the development of his opinions.