AvBuyer Magazine - July 2018

46 AVBUYERMAGAZINE– July 2018 http://www.AVBUYER.com Aircraft Index see Page 129

Mike Foye is director of marketing,

JETNET and can be contacted via

[email protected]

JETNET, meanwhile, the ultimate

source for information & intelligence

on business and commercial aircraft

worldwide, can be contacted via

http://www.jetnet.com

BIZAV INTELLIGENCE MANDATES

is typically expressed in aircraft flight cycles or flight

hours (though OEMs can offer modification programs

to extend these thresholds).

After the aircraft is retired, many of its parts (such

as the engines, landing gears or avionics

components) continue to have a useful life.

Unfortunately, the fuselage is considered to be scrap

metal and has little value beyond the scrap value.

Among the items that have value beyond the life

of the aircraft are its engines, landing gear, wheels,

brakes, avionics, radios, control surfaces, actuators,

and (generally speaking) anything that can be

unbolted. Heated windows in good condition can

also have value.

Do Used Parts Come With Warranties?

Table C(above) provides an example of a quote with

pricing options and warranty for two gauges based

on an exchange of parts for a 30-plus-year-old

business jet. As depicted, the value of a used part will

depend on the time remaining on the warranty.

Fixed-Wing Aircraft Retirements, by Type

Table D (above) depicts the number of aircraft (by

type) retired from the worldwide fixed-wing aircraft

fleet as of June 6, 2018.

The Big Aircraft Salvage Question...

In order to have a General Aviation salvage company

provide a bid for your aircraft, the first question that

needs to be answered is whether the aircraft is

flyable. If it’s not, then this will impact the overall price

that a salvage company will offer you, because it will

need to hire a hauling company to bring the aircraft

to its facility to dismantle. After January 1, 2020, how

do you get your aircraft to the salvage yard?

There are four major General Aviation salvage

companies in the US. These include Alliance Air Parts;

White Industries; MTW Aerospace; and Dodson

International Aircraft Parts.

In Summary

Many aircraft owners have been slow to react to the

ADS-B mandate, hoping the FAA may extend the

deadline beyond 2020 or that the price of the

equipment will fall. The impact of a potential

grounding of non-compliant aircraft, however, will be

both costly and time consuming, especially when

coupled with the potential loss of residual value. 

Mike Chase (president,

Chase & Associates) offers

highly sought-after

aviation market research

expertise. Contact him

via [email protected]

$1,350

Gauge # 2

Six MonthsSix Months

Gauge # 1

Six Months Three Months^ One Year^ Six Months^

$ 795 $ 3,950 $2,150^

(^)
Exchange Exchange New Exchange
81% of aircra! storages are jet airliners
Source: JETNET (per June 6, 2018)
$
Jet Airliner
Turboprop
Business Jet
TOTAL
2,875
8,216
4,334
24,986 1,653
241
2 09
1,343
51
Aircra! Type # Retired # In Storage
Piston
Turbine
Piston
Fixed Wing
1,156
5,250
3,155
24,986 1 ,653
6
32
12
Rotary
Table C - Example Quote With Pricing Options and Warranty
Table D - Worldwide Fixed-Wing/Rotorcraft Retirements & Storages
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