Back to InsightsAccurately Valuing Your Aircraft is Key to Easier Transactions
The market for preowned aircraft has fully transitioned from the unprecedented bidding wars of recent years into a balanced market. Today, aircraft are no longer selling the instant they are listed. As the market operates on its traditional basis for buying and selling, it is more crucial than ever for sellers to have experienced brokers help guide them in making the most of their valuable assets.
With expertise honed through decades of deals, our in-house research team utilizes comprehensive global market analytics to accurately navigate the current marketplace and help plan for future fleet decisions.
Overcoming Speculation
During the post-2020 aviation boom, aircraft sales were based on a number of factors outside the normal marketplace. While the increased demand for private aviation and the advantages of fully controlling one’s travel capabilities are permanent fixtures, the bidding wars over aircraft have ended. Speculators who once looked for constant price increases discovered that those economics were not sustainable.
Today, accurately valuing one’s aircraft is key to ensuring faster and fair transactions. Sellers who over-assess their aircraft are finding they need to reduce their prices to avoid having the plane sit for a longer period.
At Hatt, we analyze market trends and data, but we also know the importance of how the aircraft equipment, programs, and conditions contribute to its valuation. We always prioritize the seller’s interests, which means advising them honestly about upgrades and modifications needed, or how specific aircraft types are doing. We know that harder decisions made earlier in the process will lead to a more positive outcome in the end, rather than just telling an owner that their plane’s value is what they assumed it is.
As part of these sales fundamentals, we work with experienced inspection and maintenance experts to help educate clients on properly evaluating the aircraft. During the recent sales boom, some aircraft were sold without major pre-buy inspections. But that is no longer the norm for buyers today. That is another factor sellers will need to consider, and work with the right people to incorporate that into their plans.
What are the conditions of the interior and exterior? How was the aircraft used: has it been a fractional or charter workhorse? Has it been stored inside or outside? What is the state of its avionics and inflight connectivity? In today’s market, high-speed internet and modern avionics are no longer luxury perks but baseline requirements that can heavily impact a deal. Has it always been registered in the United States, or another country? All of these answers factor into making a thorough valuation, which impacts its attractiveness to buyers.
Accuracy Means Better Business
We want sellers to have the best experience and realize the most return on their aircraft as possible. That can be achieved when expectations and valuation are both based on solid data, market experience and analysis. We pride ourselves on giving clients detailed and factual information to make the deal smoother and to everyone’s satisfaction.
Private aviation remains a resilient and powerful business tool. As the market stabilizes, the hard asset of an aircraft continues to be an excellent investment. It is a great time to check in with an aircraft specialist to accurately assess your aircraft and determine the best time to place it on the market.
Contact our team to find out the true value of your aircraft, and to evaluate the current and future state of the marketplace.