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.

Vol. 25, No. 2 | June 6, 2012 | Go to Charts

IN THIS ISSUE

Bluebook Perspectives: Thumps and Bumps in the Pre-Owned Market
Into the Blue: 12th Annual EBACE Convention Shines in Geneva
Ask Aircraft Bluebook: Why can't I find my kit aircraft in the Aircraft Bluebook?

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

Ask Aircraft Bluebook:

Why can't I find my kit aircraft in the Aircraft Bluebook?

Kit aircraft present a unique challenge to the Aircraft Bluebook – Price Digest. With the individual becoming the manufacturer, there is no guarantee of uniformity in the areas of quality assurance for how or who built the aircraft, where it was built and the conditions located therein, or even how long the building process has taken to complete. These aircraft are often very unique which can create dissimilar copies even when building a similar kit. For uniformity standards Aircraft Bluebook only represents  aircraft that are produced and assembled by manufacturers in accordance with Federal Regulations or their permissible alternatives.

Vol. 25, No. 2 | June 6, 2012 | Go to Charts

IN THIS ISSUE

Bluebook Perspectives: Thumps and Bumps in the Pre-Owned Market
Into the Blue: 12th Annual EBACE Convention Shines in Geneva
Ask Aircraft Bluebook: I have a run-out Lycoming IO-360 and the Bluebook says that the overhaul for this engine is...

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

Ask Aircraft Bluebook:

I have a run-out Lycoming IO-360 and the Bluebook says that the overhaul for this engine is $25,000, but when I enter the 2,000 hour TBO amount for the engine time it only deducts $12,500. Why is it not a deduction of $25,000?

The Aircraft Bluebook prices piston aircraft with midlife engine(s). This means that the point of reference for adjustments is from mid-life, not from zero. If an engine has a 2,000 TBO limit, then the adjustment is based on the engine’s relationship from mid-life or 1,000 hours in this example. At mid-life the Bluebook has accounted for half of the engine’s value being used and half of it remaining, so if the engine time is now adjusted to be run-out, all that is left to deduct is the remaining half (which in this case would be $12,500). Conversely, a zero-time engine would get a $12,500 credit for the same reasons just explained.