Depending on the need for an appraisal, our clients require varied appraisal products. In that regard, Jet Perspectives offers various appraisal styles:
Value Opinion Letter
Typically a 3 to 7 page letter, based on information provided by the client, which simply offers the opinion of Jet Perspectives as to the value of the aircraft with cursory market information to support that opinion.
Desktop Appraisal Report
A bound report, based on information provided by the client, which offers the opinion of Jet Perspectives as to the value of the aircraft. This report also provides detailed background information on the subject aircraft model, its competitive environment and details the existing marketplace with information regarding available aircraft and review of relevant transactions. In valuing the aircraft, these data points serve to define the market extremes and to appropriately place the Subject Aircraft within these parameters. (Sample report provided.)
Inspection & Appraisal Report
In addition to the detailed market information provided in the Desktop Appraisal, Jet Perspectives performs a rigorous on-site inspection of the aircraft and its documentation. The inspection process establishes our opinion as to the overall condition of the aircraft and its logbooks. The final report details the status of major maintenance issues and the impact these have upon the value of the aircraft. In addition, the report offers copies of the relevant ownership and airworthiness documentation, photographs and, if available, an Aircraft Status Report generated by the aircraft’s computerized maintenance program. This latter information details the status of every inspection and every component of the aircraft. (Sample report provided.)
Lease Rate Letter
For those aircraft that are involved in structured leases, Jet Perspectives can opine as to an appropriate market driven lease rate. The calculation of a monthly lease rate is a careful blend of many tangential issues such as the expected residual value of the aircraft, the cost of money as measured by commercial lending rates and the expected rate of return. As the value of an aircraft can often be very different from other published values, a Lease Rate Letter will typically confirm the aircraft’s value and then provide an opinion of its monthly lease rate based on the broad terms of the lease. Many of the nation’s leading aviation transactional attorneys make these opinion letters an important part of their files, particularly if the lease is between related parties, providing important independent substantiation of the lease.
**The pricing and availability of these appraisal products are available on request.
Future Value Forecasts
It’s tough to make predictions…..especially about the future . – Yogi Berra
What will an aircraft be worth in 7 years? Ten years? Many of our clients, particularly institutional lenders and lessors require an estimation of an aircraft’s future value. For that purpose, Jet Perspectives has created a proprietary aircraft value modeling system which predicts future values based on a number of market factors. The model uses historic long-term market averages to project realistic future values.