How Do Aircraft Brokers Determine the Market Value of an Aircraft?
When buying or selling an aircraft, one of the most critical steps is determining its true market value. Unlike cars or real estate, aircraft valuations require a deep understanding of market dynamics, maintenance history, and industry trends. As an experienced aircraft broker, here’s how I approach aircraft valuation to ensure my clients make informed decisions.
1. Market Comparables (Comps)
One of the first steps in determining an aircraft’s value is analyzing recent sales data for similar aircraft. This includes:
Make and model
Year of manufacture
Total flight hours
Engine cycles and remaining time to overhaul
Avionics and upgrades
By comparing these factors to recent transactions, we can establish a baseline market value. However, aircraft values aren’t just about past sales—they fluctuate based on current demand.
2. Aircraft Valuation Analysis (VAS) & Pricing Trends
Using a Valuation Analysis System (VAS), we assess the aircraft’s historical depreciation, competitive standing, and pricing trends. This system helps identify if an aircraft is appreciating due to supply shortages or if its value is declining due to an influx of similar models hitting the market.
3. Maintenance Status & Pedigree
Aircraft with well-documented maintenance histories and minimal operational wear typically command higher prices. Key factors include:
Compliance with required inspections
Status of life-limited components
Damage history or incident reports
Aircraft operating environment (private use vs. charter operations)
A well-maintained aircraft with no damage history and a strong maintenance pedigree is far more valuable than one with gaps in its logbooks.
4. Off-Market & Global Trends
Many high-value aircraft transactions occur off-market, meaning they aren’t publicly listed. As brokers, we leverage industry networks to access off-market pricing intelligence, ensuring our valuation reflects real-world demand rather than just publicly available listings.
We also consider global economic conditions, regulatory changes, and geopolitical factors that influence aircraft values. For example, shifts in demand from Asia, Europe, or the U.S. can impact specific models differently.
Why Accurate Valuation Matters
Overpricing an aircraft can lead to extended time on the market, while undervaluing it leaves money on the table. A proper valuation ensures a balanced pricing strategy, whether buying or selling.
As an aircraft broker, my role is to combine market data, industry insight, and technical expertise to provide clients with an accurate and actionable valuation. Whether you're looking to acquire an aircraft or sell one for top dollar, working with an experienced broker ensures you have the best market intelligence at your fingertips.
Considering an aircraft purchase or sale? Let’s discuss how we can maximize your investment.
- Chandler Brown, Sales Associate