Diminution in Value

Determining the Reduced Market Value of an Aircraft As a result of damage history

2141-Aircraft Exterior Macro

In the world of aircraft transactions,

When evidence of “damage history” appears in an aircraft’s records, the tendency is to reduce the value relative to its peers in the marketplace.

KAIRVALS has considerable experience in determining these value adjustments.

KAIRVALS considers the following issues when researching a Diminution in Value report.

The current market for the subject aircraft
  • Measure activity by number offered for sale and number of transactions
The degree of damage or modification to the aircraft
  • Major – fuselage, empennage, or wing
  • Minor - Bolt-on parts flaps, ailerons wheels, or elevators
Cause of damage
  • Hangar rash
  • Block to block event
The competence and accreditation of the repair facility
  • OEM or
  • Part 145 facility not related to OEM
  • The source of the parts used in the repair
  • Have FAA Forms 337 related to the damage and repair been added to the aircraft’s record?
  • Is there an engineering report authored by the OEM?
  • Are there changes to the aircraft operating manual or maintenance schedule resulting from the damage and repair?
  • Are there changes to the weights and performance of the aircraft resulting from the damage and repair?
  • Is there a change in payload or fuel capacity?
  • Research the comparative input from market players on similarly damaged and repaired aircraft.