Aircraft Valuation for Lease Buybacks, Returns & Financing
Axium has valued aircraft for lease buyback engagements, assessing airworthiness records, engine shop visit history, flying hours and cycles, and any modifications or conversions made to the aircraft, to arrive at fair market value.
Assets Axium values in this sector
- Airframes
- Engines (valued separately from the airframe)
- Auxiliary Power Units (APUs)
- Avionics & cabin modifications or conversions
- Life-Limited Parts (LLPs)
Axium's experience in aircraft valuation
Axium has valued aircraft as part of lease buyback engagements, a process that starts with reviewing airworthiness documentation and engine shop visit records, then assessing flying hours and cycles, cycles being tracked specifically for engines. Any modifications or conversions made to the aircraft are identified and valued separately. The airframe and engines are assessed independently of each other, since each has its own remaining useful life, and engine value is benchmarked against half-life value, the industry-standard condition baseline between major overhauls, to arrive at fair market value (FMV). See our page on Plant, Machinery & Equipment valuation for more.
Common triggers for an aircraft valuation
- Lease return or buyback valuations
- Lease renewal negotiations
- Sale-and-leaseback transactions
- Insurance valuation
- Secured lending & financing collateral
Frequently asked questions
How is an aircraft valued differently from other plant & machinery?
The airframe and engines are assessed separately, each against its own remaining useful life, based on flying hours, cycles, airworthiness records and any modifications or conversions, rather than as a single depreciating unit.
What is "half-life value" in aircraft engine valuation?
An industry-standard benchmark representing an engine's condition at the midpoint between major overhauls, used as a reference point when assessing an engine's fair market value.
What documents are reviewed in an aircraft valuation?
Airworthiness certificates, engine shop visit records, flying hours and cycle logs, and records of any modifications or conversions made to the aircraft.
Is aircraft valuation covered under Axium's IBBI registration?
Yes, under the Plant & Machinery asset class of IBBI Entity Registration IBBI/RV-E/04/2021/144.
Need a valuation?
Have questions first? Call +91-8939-891329
Not ready yet? Browse our Resources for guides on IBBI registration and fee schedules.