An aircraft is a high-technology asset whose market value depends far less on its age than on its maintenance status: flight hours and cycles, the remaining life of the airframe and engines, the condition of the avionics, and the validity of the certificate of airworthiness. The Kanzas company performs independent aircraft valuation and appraisal — airplanes, helicopters and general aviation — for lessors and lenders, parties to cross-border transactions, insurers, and companies reporting under International Financial Reporting Standards (IFRS).
Our track record includes the appraisal of the fleet of a Ukrainian airline, where the value of each aircraft was determined from its type, year of manufacture, accumulated flight hours and the remaining life of its major components. There is virtually no open domestic market for aviation assets in Ukraine, so the appraisal relies on international market data for comparable aircraft types combined with a technical review of the specific airframe's records.
What drives the value of an aircraft
- aircraft type and modification, year of manufacture;
- total flight hours and take-off/landing cycles;
- remaining life of the airframe and engines before overhaul or retirement;
- validity of the certificate of airworthiness and completeness of the technical records;
- configuration, condition of the avionics and cabin, operating and repair history.
Two aircraft of the same type and vintage can differ materially in value depending on utilisation and remaining component life — which is why the appraisal centres on the aircraft's logbooks and records rather than its nominal age.
Aircraft and helicopters we appraise
- mainline and regional commercial airplanes;
- helicopters of all classes;
- general aviation aircraft;
- the entire fleet of an airline or enterprise — where aircraft form part of fixed assets or of an integral property complex;
- aircraft engines and major components as standalone assets.
Purposes of an aircraft appraisal
- collateral for bank lending and periodic revaluation of pledged aviation assets;
- financial leasing of aircraft — for the lessor, the lessee or the financing bank;
- sale and purchase, including cross-border transactions;
- insurance and determination of the insured value;
- contribution of an aircraft to charter capital;
- fair value measurement and revaluation of fixed assets under IFRS and Ukrainian accounting standards.
Approaches to aircraft valuation
Ukrainian valuation law prescribes three methodological approaches, consistent with the framework of the International Valuation Standards (IVS).
- Comparative approach — analysis of transactions in aircraft of the same type, vintage and utilisation; for aviation assets the reference market is international by nature.
- Income approach — capitalisation or discounting of lease or charter cash flows generated by the aircraft.
- Cost approach — replacement cost less all forms of depreciation and obsolescence; applied to rare types and special-mission aircraft with no market comparables.
Inspection and documents
Where the aircraft is located in Ukraine, its physical inspection and identification by the valuer is a stage required by Ukrainian law, and we build it into the engagement schedule: the valuer examines the aircraft at its base or parking location and reviews the records on site. For the appraisal we will ask for:
- the certificate of registration in the State Register of Civil Aircraft of Ukraine;
- the certificate of airworthiness;
- airframe, engine and component logbooks (hours, cycles, remaining life);
- records of recent maintenance and compliance with airworthiness directives;
- the book value statement, where the aircraft is carried as a fixed asset.
Drawing on more than 20 years of experience with complex technical assets, the Kanzas company prepares reports that meet Ukrainian national valuation standards, reflect international market practice for aviation assets, and withstand review by banks, leasing companies and insurers. The fee and schedule are agreed for the specific aircraft list.
Send your fleet list and the purpose of the appraisal to [email protected] — we work with international clients in English and will revert with a proposal.
Questions and answers
How much does an aircraft appraisal cost? The fee and timeline are quoted after we receive the list of aircraft with their particulars (type, year of manufacture, flight hours) and the purpose of the valuation. We assess the scope, then agree a fixed fee and schedule before signing the engagement letter.
How do flight hours and remaining life affect aircraft value? Directly: utilisation and the remaining life of the airframe and engines are analysed from the logbooks and drive the depreciation calculation, so two aircraft of identical type and age can carry substantially different values.
Do you appraise helicopters and general aviation? Yes. We value helicopters, airplanes and general aviation aircraft, as well as aircraft engines and major components as standalone assets.
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