Investors - Banking - Litigators

Just as an aircraft owner has an interest in protecting their investment so should the rest of the parties involved. Many times aircraft ownership is multifaceted with investors, banks, insurance providers, business partners or board members. Only a certified appraisal will stand up to legal scrutiny when we have a change in value due to upgrades or damage. 

Certified appraisals and collateral inspections provide those invested in an aircraft a baseline value opinion but also include a very detailed inventory of avionics, engines, props, etc. Collateral inspections give all parties involved a pulse on the current condition of their asset and strength of borrower.   A collateral inspection verifies that the aircraft is equipped as when the loan was made but also verifies other factors that may lead to diminution of value such as frequency of use and storage conditions.  A change in the above factors may give the lien holder insight to the changing strength of the borrower.

Aircraft in commercial operations have a greater propensity to swap engines or props so that chase flow doesn't suffer. If all parties subject to the ownership and investment are not on the same page the aircraft could very easily have a separate lien on a new or rebuilt prop or engine leaving the original lien on just the airframe. Depending on the strength of the loan policy it may leave the loan very extended by not naming the components in the original loan. Regular collateral inspections will reveal a time line to predict engine or prop life left before replacement or overhaul.

Unfortunately disasters happen and aircraft end up with partnerships divided whether it be an insurance payoff after damage has occurred or investors who go their own ways. Due to the value and liability associated with aircraft these occasions make their way to court and only the most accurate, unbiased expert opinion will be accepted. A desktop appraisal will not stand up to the scrutiny of invested parties due to the number of variables that can only be accounted for in a certified appraisal.