In the News

Does Weather Damage Impact a Business Jet’s Value?

What exactly is a 337, though? Essentially, the FAA requires this form to be filed whenever there is a “major repair or alteration” to an aircraft. This could be for anything that changes the aircraft from the original condition that it was in when it left the factory.

For example, if a wing skin were dented by hail and then repaired by removing the skin and putting a new one in its place, that repair might not require the issuance of a form 337.
By contrast, if it was determined that hail damage necessitated an engineered repair in order to change the skin, or if repairs to the underlying structure were made by modifying them from their original condition (i.e. with reinforcements or doublers), a form 337 would need to be issued.
It’s worth noting at this juncture that form 337 is required not only for aircraft repairs, but also if an owner were to change the seating configuration, add or remove avionics, or make other upgrades to the aircraft.

How Does Aircraft Age Impact Weather Damage?

The age of an aircraft will also determine exposure to the damage history, to an extent. Over time the likelihood increases that an aircraft will have encountered an incident.
While the varying degrees of damage will impact how much the aircraft value is affected, the age of the aircraft and the time elapsed since the repair was made will also have a bearing on the reduction in value.
As an example, a three-year-old aircraft that sustained hail damage and was repaired to its original condition (with only a parts-off-and-parts-on replacement) could still potentially see less interest from buyers, whereas a 20-30 year old aircraft with the same history or more extensive repairs might not see such a marked change in value if the maintenance work was carried out several years (and possibly several owners) prior.

Who Repaired the Aircraft?
Rightly or wrongly, repairs made at a factory-owned service center will tend to instill a better sense of confidence in the quality of work in many prospective buyers. There are, nevertheless, several shops that come close to matching the standard and these are great options for repair work. They will invoke confidence from buyers.
But with older aircraft, even those first- and second-tier maintenance facilities might not be priced so competitively that an owner is willing to consider them. At the very least, the owner of an aircraft being repaired for weather damage should demonstrate that the MRO doing the repair work was vetted, and that the repairs have been documented thoroughly.
Contrary to the belief of some owners and operators that I have come across, losing this part of the logbooks will certainly not increase the aircraft’s value. Instead it will have the opposite effect. All maintenance work is required to be in sequential numbered logbooks, so any missing pages will be glaringly obvious and cause more harm to the value.

How to Prevent Weather-Related Incidents
Of course, the best bet for an aircraft owner is to try to avoid weather-related incidents as best they can. However, while incidents do occur with passengers on board, many more occur on relocation flights with no passengers on board, or while the aircraft is parked on the ground.
If the flight department policies were followed to treat the company aircraft with the same care as one of the valued executives who travel aboard it (i.e. the jet was flown with the same mitigation policies regarding weather) there would be a reduced risk of it running into hail and lightning.
With that said, sometimes mishaps are unavoidable – in which case a well-documented repair by a respected maintenance facility will provide the next owner of the aircraft peace of mind knowing the airplane is sound, helping to uphold its value on the resale market.

How Should Aircraft Buyers and Sellers Act Today?

Sifting through the industry hype, Jet Tolbert makes sense of the used jet marketplace moving into Q4 2018. Are buyers or sellers justified in their expectations? Or is reality to be found somewhere in between? There are many buzzwords being liberally banded around the Business Aviation sales arena at present. Terms like ‘100% bonus depreciation’, ‘active…

What is an Aircraft Broker?

Would you know how to find the right broker for your next aircraft transaction? It may seem like a simple enough question, but a lack of clarity does still exist over what distinguishes aircraft brokers from aircraft dealers. What exactly is a business aircraft broker, and how can you choose the right one for your…

Tips for Approaching Today’s Used Aircraft Market

Buying and Selling Business Jets What’s the best advice for buyers and sellers entering today’s used international aircraft marketplace, and why does it help to broaden the search as widely as possible? Jet Tolbert discusses… Looking back over our recent aircraft sales, it’s clear there has been a stronger international flavor lately. While this micro…