Why Aircraft Valuation Matters
An accurate valuation is the foundation of every significant aircraft decision — buying, selling, financing, insuring, or estate planning. Unlike real estate, where comparable sales are abundant and publicly recorded, the aircraft market is relatively opaque. Transaction prices are rarely disclosed publicly, and each aircraft is unique in its maintenance history, configuration, and condition. This makes professional valuation essential.
An incorrect valuation has real consequences. Overvalue your aircraft when selling and it sits on the market for months, depreciating further while carrying ongoing costs. Undervalue it and you leave money on the table. Overvalue when buying and you overpay. Undervalue for insurance and you face a coverage gap in the event of a loss. Every scenario demands precision.
Plane Selection's valuation service draws on proprietary market data, recent transaction experience, and deep technical knowledge of aircraft systems and maintenance programmes. We do not rely on generic databases alone — we combine data with professional judgement developed over two decades and $250 million in completed transactions.
Valuation Methods
Aircraft valuation employs three primary approaches, each suited to different situations. A thorough valuation considers all three and reconciles the results:
Market-Based Approach (Comparable Sales)
The most commonly used method. We analyse recent sales of comparable aircraft — same type, similar age, similar total time, and comparable condition — and adjust for differences. Key adjustments include:
- Total airframe hours and landing cycles
- Engine hours and cycles relative to overhaul intervals
- Maintenance programme status (recently completed vs. approaching major events)
- Avionics configuration and modification level
- Interior condition and age since last refurbishment
- Paint condition and age
- Geographic location and registration jurisdiction
This approach works best when sufficient comparable transactions exist. For common types (Citation, Challenger, Gulfstream), we typically have robust data. For rare or unusual aircraft, comparable sales may be limited.
Cost-Based Approach (Depreciated Replacement Cost)
This method starts with the current new-build price of an equivalent aircraft and applies depreciation based on age, utilisation, and condition. It also accounts for the value added or subtracted by modifications, upgrades, and maintenance status. The cost approach is particularly useful for:
- New or nearly new aircraft with few comparable pre-owned sales
- Aircraft with significant modifications that add value above standard configuration
- Unique or rare aircraft types with limited market data
Income-Based Approach (Capitalised Earnings)
Used primarily for aircraft operated in commercial charter or management programmes, this method values the aircraft based on its income-generating potential. We analyse charter revenue, operating costs, utilisation rates, and contract terms to determine a present value. This approach is most relevant for:
- Aircraft on charter certificates generating revenue
- Managed fleet aircraft with established utilisation records
- Fractional ownership shares
Factors Affecting Aircraft Value
Age and Utilisation
Total airframe hours, landing cycles, and calendar age are the primary depreciation drivers. However, the relationship is not linear — a well-maintained aircraft with moderate hours ages more gracefully than a low-utilisation aircraft that has been sitting in a hangar with deferred maintenance.
Maintenance Status
Perhaps the single most significant value factor after type and age. An aircraft that has just completed a major inspection is worth substantially more than one approaching the same event. Engine programme enrolments (ProParts, MSP, JSSI) provide cost certainty and add value.
Pedigree and History
Ownership history matters. Single-owner, privately operated aircraft typically command a premium over aircraft that have been used in high-utilisation charter operations. Damage history, even when fully repaired, reduces value. Geographic history (salt-air, desert sand) affects corrosion assessment.
Avionics and Modifications
Current avionics (ADS-B Out, CPDLC, FANS 1/A) command a premium. Aircraft requiring avionics upgrades for mandate compliance are discounted. Beneficial modifications — winglets, engine upgrades, performance enhancements — add measurable value.
Interior and Exterior
A fresh interior and paint job can add $500,000 to $2 million to an aircraft's perceived and actual value. Conversely, a tired interior dramatically reduces buyer interest and price, even if the aircraft is mechanically excellent.
Market Conditions
Supply and demand dynamics affect all aircraft values. Low inventory and strong demand push prices up; high inventory and weak demand push them down. These cycles affect different aircraft categories at different times and to different degrees.
Market Data Sources
Accurate valuation requires comprehensive data. Plane Selection draws from multiple industry sources:
- JetNet: The aviation industry's leading market intelligence platform, providing fleet data, transaction histories, and market trends
- AMSTAT: Aircraft market data and analytics covering the global fleet
- Vref: The standard reference for aircraft values, used by lenders, insurers, and tax authorities
- Proprietary data: Our own transaction records and market observations from 20+ years of active brokerage
- OEM price lists: Current manufacturer pricing for new-build aircraft, providing the baseline for depreciation calculations
- Maintenance programme costs: Current rates for MSP, JSSI, ProParts, and other engine and airframe maintenance programmes
Valuation for Specific Purposes
Sale or Purchase
The most common valuation request. We provide a fair market value (FMV) opinion that reflects what a willing buyer would pay a willing seller in an arm's-length transaction. This valuation forms the basis for listing prices and purchase offers.
Insurance
Insurance valuations determine the hull value — the amount the insurer will pay in the event of a total loss. We recommend reviewing insurance valuations annually, as market movements can create coverage gaps. An accurate insurance valuation protects you from being underinsured (and absorbing a loss) or overinsured (and paying unnecessary premiums).
Financing
Lenders require independent appraisals before approving aircraft finance. We provide valuations that meet lending institution requirements, including USPAP (Uniform Standards of Professional Appraisal Practice) compliance where required.
Estate and Tax Planning
Aircraft held in personal estates or corporate structures require valuation for tax reporting, estate settlement, gift tax calculations, and corporate balance sheet reporting. We provide valuations that meet IRS, HMRC, and other tax authority requirements.
Litigation and Dispute Resolution
In cases involving partnership dissolution, divorce settlements, insurance disputes, or contractual disagreements, an independent aircraft valuation provides an objective basis for resolution. Our valuations are defensible and can be supported with expert testimony if required.
Request a Valuation
To prepare a valuation, we need the following information about your aircraft:
- Aircraft type and serial number
- Registration number
- Total airframe hours and landing cycles
- Engine hours, cycles, and programme enrolment details
- Most recent major inspection and next scheduled events
- Avionics configuration
- Interior and paint dates
- Any significant modifications or STCs
- Damage history (if any)
Contact us with these details and the purpose of the valuation, and we will provide a fee quote and timeline. Most valuations are delivered within 3–5 business days.
