There is prevalent need to ensure an aircraft is in good condition before it is put into use and there must be approvals in this regard. This is a basic requirement by industry regulators who always seek to have the process undertaken in a professional manner to avoid any possible risks. Valuation of the aircraft is one among the procedures required before an approval is given and there are various parties who can request for this undertaking. The valuation is done by a professional who is required to be impartial and offers a platform to make choices for buyers.
Prevailing the condition of the aircraft is what the valuation process features on hence giving its condition as at that time. Different parts of the aircraft must be evaluated each at a time and in such way produce results on each. Documents such as logbooks among others are also used in the valuation process and in such way offer a platform to produce factual information. The final step in the process takes a look into the systems installed and working on the aircraft and the data is analyzed.
Undertaking a valuation process for the aircraft comes for numerous reasons. Those seeking to make acquisition of aircrafts must have the cost ascertained before they can make choices to buy. This is also the same for those seeking to dispose of old aircrafts that have been in use for some time. It is also among the important documents that must be provided to financial institutions funding the purchase of the aircraft. In the event of an accident, it is the same process that is required by insurance companies to help determine the appropriate compensation to the owners.
When seeking to acquire an aircraft, one of the important considerations is the cost of getting a factual and approved appraisal. The valuation process is complex and further comes with no set rates for charges to be applied. Regulating authorities in the industry, however, have the set procedures to be followed and these may form a platform to calculate costs to be applied. Once consulted, professionals who offer the services will always give a possible quote for the process but this is normally an estimate. To avoid overexposure of clients, the regulating authorities however have capping gaps that must be followed by the service providers.
Aircrafts are pricey possessions. With an appraisal in place, the investor seeking for an aircraft, therefore, has a platform to raise the required resources to cater for financial needs in the process. To be effective in produce appraisals most of the service providers employ the use of various tools. These include the aircraft valuation calculator that serves to provide with the exact value of the aircraft. There is need however for professionals to have the tools in place and in the same respect ensure they possess the essential skill to do it.