58 AVBUYERMAGAZINE– July 2018 http://www.AVBUYER.com Aircraft Index see Page 129recurrent inspection to verify their integrity and
that of the surrounding area – and this will impact
the buyer in their future operations. A thorough
review of an aircraft’s historical records should be
undertaken to establish any potential exposure to
you during your ownership period of the aircraft.Past Damage Impact on Future Value
The second, but equally pragmatic concern for
buyers is that past repairs could impact the value
of the aircraft when the buyer comes to resell the
aircraft in the future. After all, the aircraft’s history
will have to be disclosed to the next owner as part
of the sale.
Aside from any misgivings about buying an
airplane with damage history, a purchaser should
consider how the market has been reacting to
the varying degrees of repairs that an aircraft
may have.
As an example, if a review of market
transactions shows that only aircraft in pristine
condition with no prior incidents or repairs have
been selling, then you may want to reconsider
buying an airplane with damage history – or at
least do so with the understanding that you will
have to motivate buyers somehow when it comes
time to resell the airplane later.
On the other hand, if the market has been fluid
with similar aircraft trading regularly at a clear
price-point then the key issue for the buyer is
going to be paying a fair price. An experiencedacquisition broker will advise you on all these
points, informing you of all the circumstances
surrounding an aircraft’s history and how they will
affect your usage and future resale.From ‘Not All Bad’ to ‘Deal-Killer’
Essentially, all aircraft have repair history of some
kind. It’s not all bad - but sometimes it can be a
deal-killer. Considering that an aircraft purchase is
a lengthy process with many twists and turns it is
surely wise to be well informed.
Aircraft damage history can be a steep learning
curve. Unfortunately, sometimes, the lessons aren’t
fully realized until after the aircraft has been
purchased, or much time and money has been
invested in a transaction that unravels.
A well-selected, experienced acquisition team
can ensure the right questions are asked to keep
you up to speed and able to make the best buying
decision, based on the resale market conditions.
It is essential to have the information you
need up front. Being aware of an aircraft’s history
early in the process will prevent some serious
headaches later. “...a purchaser should consider how the market has been reacting
to the varying degrees of repairs that an aircraft may have.”
OWNERSHIP BUYING & SELLING
Jet Tolbert is President of American Aircraft Sales. Established in
1968, it is a premier brokerage firm which has been a trusted
partner since corporations first began utilizing jet aircraft to grow
their businesses. With offices in the US, Latin America sales team
and a partner office in Zurich, Switzerland, American Aircraft
Sales is an active NBAA, IBAC, EBAA & ABAA member.Buying & Selling 1 JULY.qxp_Finance 19/06/2018 10:57 Page 2