The least glamorous but probably most important determinant of resale value is the condition and organization of an aircraft’s records.
Records are logged statements of all maintenance performed, parts changed, inspections completed, and items installed and removed in the aircraft’s lifetime. They are most often stored with your operator in Europe or with your pilot or mechanic in the United States. An aircraft’s records have a big impact on an aircraft’s ability to pass government audits. This is of particular importance during a transaction when it needs to switch country registers. It will have to go through a government audit which is contingent upon the records’ condition and how easy it is to see that maintenance was performed in compliance with the new country’s regulations (especially when it comes to modifications to the aircraft and parts installed). If a buyer believes they cannot import your aircraft into their country because of the records’ failure to meet the audit, they will walk away.
As a seller, you should have your broker or advisor audit your records before you put it on the market. Ensure they are detailed, complete and continuous. When you are missing large portions of the aircraft’s records, buyers will negotiate significantly on price or walk away altogether.
Blogs are written from real world experience by Colibri Aircraft’s individuals. If you have any questions or comments about the topic of this blog, please feel free to contact our team at enquiries@colibriaircraft.com
