Aircraft Valuation Blue Book - In fact, piston jet fuselage values are higher than both turbo engines (+29 percent) and business jets (+24 percent). Many pilots know hull values are rising, but don't realize it's at an unprecedented rate. This trend has many homeowners asking, "Do I have financial exposure in the event of an accident or storm damage?"
As with the housing market, many airline Bluebook listings are not at true market value. "How much would it cost to replace my jet in today's market?" This is a good question to ask yourself. If you're renewing at the same value each year, it's possible to insure at least $100,000 less. Assuming you haven't adjusted your body value since pre-Covid, here's how much increase you'd see on average:
Aircraft Valuation Blue Book
Although all aircraft values have increased in recent years, piston aircraft have experienced the most significant change. Since September 2019, the average airframe value of piston jets has increased by 34 percent, 5 percent higher than turbo engines and 10 percent higher than business jets. While the value of all piston aircraft was affected, some makes and models experienced more significant price increases.
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The change in value for turboprop aircraft compared to piston aircraft is slightly less significant, although there is a significant increase. As with piston aircraft, some makes and models have experienced more significant growth than others.
Based on these changes, there has been much discussion in owner and operator forums this year about increasing the body values of their aircraft. I have noticed that many pilots and aircraft operators who have been in the industry for a long time mention the importance of insuring an aircraft based on its current market value.
Another interesting trend supported by the data is the lead time for new shipments from manufacturers such as Pilatus, Cirrus, Piper, Daher, etc. At EAA Oshkosh 2022, manufacturers confirmed that if you're looking to buy a new business jet, you're in for an exceptional experience. Waiting period
Of course, there is a chance that people will cancel their orders, but these prime times show a significant number of orders and requests, which leads to an increase in the value of the aircraft. Needless to say, the global pandemic and the resulting supply chain disruptions have had a major impact on the airline industry, giving pilots and owners a lot to consider when insuring their aircraft.
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In most cases, aircraft owners can request an increase in hull value to what they believe is current market value by notifying their insurance broker. However, in some cases, insurers require more justification. This may include maintenance logs, invoices for upgrades to avionics, interiors and equipment. Additionally, pilots may be required to obtain a formal rating from an accredited flight assessor.
Owners have several resources available to them to determine whether their aircraft is underinsured or overinsured, including:
There are many reasons why you might not want to cut your flight short. Minimizing it is a moral hazard. Basically, an insurance policy is a contract between you and your insurance company where you agree to sell your aircraft for an agreed value. If it's uninsured, you may have too much money, which is the difference between the agreed value you secured, minus the cost of replacing it with the current market value.
To determine how much your plane could cost you if it's uninsured, let's consider one last example.
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The pilot requested an increase in the fuselage value of his Commander 1000 aircraft to $1 million, based on his understanding that major Commander sales brokers were consistently selling similar Commanders for $1 million to $1.5 million.
However, it was deferred by the underwriter based on the average Bluebook value. Because the aircraft's book value was approximately $437,000, the underwriter denied the claim without a formal appraisal and without calculating the costs of parts for upgrades (labor not included).
Although an appraisal costs about $1,000, it's a small price to pay if a pilot wants to accurately insure the value of his airframe. If they agree with the Bluebook value, they can be insured for between $563,000 and $1.06 million.
Although a careful pilot would never intend to crash his aircraft, there are several risks beyond his control that could damage the aircraft, including:
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If the aircraft is worth less and therefore less insured, the pilot can keep the bag. This is a perfect example of the importance of completing an accurate appraisal of your aircraft based on market value. After completing a proper appraisal, a common option for airframe insurance is market value insurance +/- 10 percent. If it is under-insured or under-insured, it creates a form of "moral hazard". If a claim is made against the aircraft and it is insured, the insurance company has a greater incentive to "total" the aircraft and pay the owner the agreed value, while making a profit on the current market value.
Many people assume that "wait a few months and the market will adjust again". While it's true that the market is slightly down from its peak, it's nowhere near recovering to pre-pandemic levels.
Transaction volume decreased by 16 percent while prices increased by 12 percent, meaning there is less inventory.
I understand the view that some have that pre-owned aircraft prices will decrease. They probably do at some point. However, I'm not sure the new quote prices will come out dramatically because Textron's costs have gone up or will go up when they renegotiate their supply contracts.
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Insurance premiums are body value rate, so yes, your premium will increase according to the agreed value of your aircraft. Although the rates are a sliding scale, the higher the hull value, the lower the rate.
The best time to discuss the increase in the value of the airframe is after the policy is renewed. A request to change the value can be made at any time, but most underwriters are reluctant to change the mid-term value unless there are compelling circumstances.
If you are a pilot or aircraft owner who is reaching the end of the terms of your policy, I invite you to contact Sunset Aviation to discuss your renewal options. We will answer any flight insurance questions you may have and ensure your flight is fully covered based on current market value. We are always happy to offer friendly advice. With over 20 years of experience in the aviation industry, we serve general and business aviation. KBB value of the flight.
Based in the Caribbean, the business combines a dedicated team of professionals, inspectors and pilots, working to ensure our customers enjoy flying as much as we do.
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In addition to brokering, transporting and operating flights, we are very careful to maintain our excellence under the pressure of regulations and time.
An FAA pilot and EASA-certified maintenance inspector, his career record includes significant experience in the airline industry. KBB value of the flight.
For many years, as president of the Flying Club, he advised its members on matters of aircraft maintenance and safety.
We are always happy to offer friendly advice. With over 20 years of experience in the aviation industry, we serve general and business aviation. The FAA and EASA are a dedicated team including pilots, A&P mechanics and inspectors. We provide support and maintenance programs and facilities to airline companies and associations around the world.
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It also supports its customers when buying or selling aircraft. Our technical experts can provide accurate valuations and handle EASA/FAA STCs so that you can easily export your aircraft from the United States of America or any other country. KBB value of the flight.
Based in the Caribbean, the business combines a dedicated team of professionals, inspectors and pilots, working to ensure our customers enjoy flying as much as we do. Every month, we see thousands of airplanes or helicopters, and our experts use this advantage to build an accurate database of flight prices. The team is regularly updating this database and offers you free evaluations of various flights that you can find in the world market. Check out our comprehensive guide to the process of buying a plane.
Now you can use many free flight reviews. It gives you accurate estimates for used aircraft and also provides you with some new aircraft values. Select your aircraft information (class, type, make and model) to provide you with a quick assessment of your aircraft. You can provide the engine(s) time from the major overhaul for an accurate flight estimate. Try Now... Aircraft KBB Value. « Beechcraft Premier 1A Market at a Glance | main | Pre-Owned Business Aircraft Market Charts from the Winter 2014 Market »
Aircraft Bluebook At-A-Glance Cessna's quote examines the current market status of the Sovran series of aircraft. Research for this study was obtained in part from the Aircraft Bluebook, the Aircraft Bluebook Historical Value Reference, the FAA Registry website, and various commercial services.
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