Advisory
Aircraft Valuation, Aviation Analytics, Aviation Data
Aircraft valuation plays a crucial role in aviation services, ensuring accurate assessments of asset worth in a dynamic and evolving market. At Acumen Aviation, we offer precise and data-driven valuations that help stakeholders, including lessors, investors, and airport management teams, make informed decisions. Our expertise extends across multiple valuation approaches, each designed to meet specific financial and operational needs within the aviation maintenance sector.
Base Value
A Base Value is determined based on historical and projected value trends, offering a stable reference point for long-term financial planning. This approach assumes:
- An unrestricted and balanced market environment.
- A mid-life, mid-time aircraft condition based on type and age.
- Average aviation maintenance status without any undue depreciation factors.
Base valuations are widely used in aviation services to support long-term investment planning and asset portfolio management
Market Value
A Market Value reflects the likely trading price of an aircraft under current market conditions. This valuation approach:
- Assumes the highest and best use of the aircraft.
- Presumes a favourable transaction environment between informed buyers and sellers.
- It is critical for airport management and fleet operators to assess aircraft acquisitions and sales.
By integrating real-time market data, we ensure that aviation services providers receive the most accurate valuation insights
Securitisation / Lease Encumbered Value
A Lease Encumbered Value is based on the appraiser’s opinion of an asset under an active lease. It considers:
- Lease terms, including rent schedules and contract duration.
- Future estimated aviation maintenance costs at lease expiry.
- Discount rates are applied based on credit risk and financing terms.
Diminution Value
A Diminution Value measures the difference in asset worth before and after an incident or accident. This valuation helps in:
- Assessing financial losses resulting from operational mishaps.
- Determining insurance claims and compensation calculations.
- Ensuring compliance with aviation maintenance regulations and safety standards.
Residual Value
A Residual Value estimates the worth of an aircraft at a future date and is commonly used at the end of a lease term. It takes into account:
- Projected aircraft demand in aviation services.
- Expected depreciation based on age and aviation maintenance schedules.
- The impact of technological advancements and regulatory shifts.
Residual valuations are crucial for airport management and lessors planning fleet renewals and exit strategies.
Distress / Liquidation Value
A Distress Value assumes that an aircraft is sold under duress, often due to financial constraints or urgent liquidation requirements. This approach:
- Reflects market conditions favouring buyers over sellers.
- Leads to heavily discounted pricing.
It is commonly used in bankruptcy proceedings and urgent asset disposals in aviation services.
Salvage Value
A Salvage Value represents the worth of an aircraft, engine, or major assembly in terms of reusable parts. This valuation helps in:
- Determining potential returns from parting out aircraft components.
- Supporting aviation maintenance teams in spare parts procurement.
- Evaluating sustainability-focused asset disposal methods.
Online Valuation
Through our proprietary platform, fin-S, Acumen provides airport management teams, lessors, and fleet operators with instant, data-driven aircraft valuations. This online service enables:
- Quick, reliable valuations for various aircraft types.
- Digital accessibility for streamlined decision-making.
- Integration with asset management and aviation maintenance tracking systems.
By leveraging advanced analytics and industry expertise, Acumen’s valuation services ensure accurate, transparent, and market-aligned assessments for clients across the aviation services sector.