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Marketline Newsletter
For over 50 years, Aircraft Bluebook has been providing valuable information designed to give the most accurate, comprehensive and timely assessment of the aircraft market.
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« MARKETLINE WINTER 2012 EDITION | Main | MARKETLINE WINTER 2012 EDITION »

MARKETLINE WINTER 2012 EDITION

Vol. 25, No. 4 | December 7, 2012 | Go to Charts


IN THIS ISSUE

Bluebook Perspectives: Facing the Nation
Into the Blue: Aircraft Bluebook At-a-Glance, Cessna 152 Series
Ask Aircraft Bluebook: In the aircraft base average lines in the Bluebook we always see the “No Damage History” as a standard requirement, but if there is damage how does the Bluebook reflect this in terms of value?

[Download the full Winter 2012 Marketline Newsletter and All Charts.]

Ask Aircraft Bluebook:

In the aircraft base average lines in the Bluebook we always see the “No Damage History” as a standard requirement, but if there is damage how does the Bluebook reflect this in terms of value?

The short answer is that depends. Diminution of value is a very subjective concept in the aviation market. Even though most experts confirm its role in negotiating the purchase or sale of an aircraft, there are no specific techniques or principles that can be applied in every case of diminution. This aircraft characteristic (damage) is one of a multitude used during the negotiating process and is very hard to isolate its effects because every aircraft has a different history and a different perception of value. In transactions, the buyer will always be the final judge for the “value” of the aircraft and include the diminution factor in his or her evaluation.

With that said, it must be understood that when dealing with assessing the market value of an aircraft with a damage incident, a multitude of factors must be reviewed and analyzed in relationship to the market for a specific aircraft model. There is no set formula that can be accurately applied to determine diminution of value, if any, regarding damage. The only appropriate method to determine the market value involving the characteristic of damage on an aircraft is for a technically qualified, experienced appraiser to conduct an investigation of the aircraft and logs, review specific issues regarding the repairs, compile all of the elements of the damage event and subsequent maintenance history, and then apply the conclusions to market activity for the specific aircraft.