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  • KabirT

Question about aircraft resale valuations

Hi all,

I was just interested to know something. When a relatively new aircraft is parked in the desert for some time as it looks for a new home, does the valuation of the aircraft get affected just because it was parked for a considerable period of time?

Also does parking the aircraft in facilities such as the ones in Arizona or Nevada need a hefty bill of repairs and maintenance once it does find a new home?

Any info on these liens would be great.

Thanks.

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By: symon - 4th July 2012 at 09:11

In certain conditions, engines may be left on-wing without any maintenance. Beyond that, preservation procedures and checks need to be carried out. Parking engines in a desert would probably one of the worst places for them, so removing them and storing them would be best. If they are left on-wing for too long without correct preservation (or just for too long in general), they may require an expensive shop visit.

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By: Amiga500 - 3rd July 2012 at 23:34

2 months is nothing. I thought you were talking years.

Boeing would have a list of (any!) perishable (i.e. need use for lubrication) seals – they’d need inspecting/replacing.

Obviously the full diagnostics would be run, but beyond that, not much I’d think (as long as the aircraft was stored with a view to a sale within a few months). Ryanair have a rake of 737s sat at Birmingham, probably haven’t moved in a few months – a day or two would probably put them right for flight-line (basically checking all systems work).

You take the engines off (or start removing systems) and things extrapolate in cost.

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By: KabirT - 3rd July 2012 at 20:20

Lets say a new B777 is taken straight to Victorville for storage…taped up and does not find a new owner for 2 months. What kind of prep would we look at?

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By: Amiga500 - 3rd July 2012 at 19:43

When a relatively new aircraft is parked in the desert for some time as it looks for a new home, does the valuation of the aircraft get affected just because it was parked for a considerable period of time?

How long is considerable?

Long enough for newer more fuel efficient variants to come to market? That’ll definitely affect residual values.

Also does parking the aircraft in facilities such as the ones in Arizona or Nevada need a hefty bill of repairs and maintenance once it does find a new home?

As a bare minimum, all time-dependent maintenance will need performed. After that, you might need to consider seals that get lubricated in operation etc. Any FAA/EASA directives on the particular aircraft will need to be acted on.

Structural components, which are usually lifed in flight cycles or flying hours will be fine, electronics should be fine given the low humidity environment.

Quantifying it would be quite unique to nearly every aircraft – and would take a considerable amount of time just to capture the “to-do list” never mind put costs on it!

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By: Arabella-Cox - 3rd July 2012 at 19:19

I suppose they’d need some sort of recommissioning but like you, I’d be interested to know exactly what.

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