An element that is becoming more substantial in an aircraft’s resale value is Avionics Compliance. It is especially becoming more relevant as the International Aviation Standards have passed a lot of new avionics mandates that have gone into effect and will be required in the upcoming years. As examples, TCAS 7.1 which is already in effect in Europe, ADS-B Out which comes into effect in the USA and Europe in 2020, FANS 1A which is currently in effect at certain altitudes to cross the Atlantic and will come into effect in 2020 for all aircraft crossing the North Atlantic at above 29,000 feet, and CPDLC which will come into effect for Europe in 2020. Each of these can cost anywhere from $50,000 to $1 million depending on the avionics. Many buyers are now starting to look for these upgrades to be already installed or completed as part of a transaction. Often the installation cost is discounted from the purchase price. Avionics compliance can be complicated and is specific to each aircraft type and certification. Gulfstream G550 buyers are looking for these upgrades and requiring their inclusion in transactions, whereas Citation Ultra buyers are less effected by them and are not mandating them in transactions. Your broker will know which of these avionics are affecting your aircraft and location. Realize which, if any, you are going to have to take into account for your transaction.
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