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If you will be attending Heli-Expo stop by Booth C1417 and take a tour of The Offcial Helicopter Blue Book®.
If you would like to schedule a meeting with HV$ staff, please click the meeting scheduler link below.
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HeliValue$, Inc. held its third-quarter Blue Book pricing review in October. Resale pricing adjustments were made for the following models:
Q3 Blue Book Pricing Changes
Model Yrs. Of Mfg. Affected
Airbus AS-350B2 1989-2015
Airbus EC-130T2 2012-2017
Bell 212 1971-1998
Bell 407GXP 2014-2018
Robinson R44 Beta II 1996-2018
Robinson R44 Clipper I 2000-2018
Robinson R44 Clipper II 2002-2018
Robinson R44 Raven I 2000-2018
Robinson R44 Raven II 2002-2018
Schweizer 300C 1985-2008
Our second-quarter Blue Book review was held July. Resale pricing adjustments were made for the following models:
Q2 Blue Book Pricing Changes
Model Yrs. of Mfg. Affected
Airbus AS-350B2 1989-2002
Airbus AS-350BA 1991-1999
Airbus AS-365N2 1990-2003
Airbus EC-130B4 2001-2011
Airbus EC-135P1 1996-2002
Airbus EC-135T1 1996-2002
Airbus EC-135P2 1998-2016
Airbus EC-135T2 1998-2016
Airbus EC-225 2004-2015
Airbus SA-365C 1977-1981
Airbus SA-365N 1981-1986
Airbus SA-365N1 1987-1990
Bell 206BIII 1977-1998
Bell 407 1996-2014
Bell 407GX 2011-2014
Bell 407GXP 2014-2018
Sikorsky S-76D 2012-2015
Resale pricing adjustments are based on actual sales transactions and current market conditions such as overall trends in asking prices, increase or decrease in supply, demand, and sales volume. We obtain sales pricing data from owners and operators, lenders and lessors, brokers and equipment manufacturers worldwide.
While we do review all models each quarter, frequently traded models are updated as soon as they begin to show variation from the previously published values. Stay up-to-date on resale pricing changes by purchasing an annual subscription.
The dangers and uncertainties of an unstable market are plentiful. Businesses struggle to find their footing and make all possible adjustments to survive the storm. We are seeing some recovery, but it’s no secret that the helicopter industry is still trying to cope with a depressed market. We’ve seen almost every possible situation play out during the downturn; from acquiring operational funds through the leveraging of assets, the sell-off of assets, returned leases, bankruptcy and restructuring, and some closing the doors completely. In almost all cases, an appraisal is required and depending on the situation, the parties involved are either looking for the highest possible values or the lowest possible values.
The pressures these businesses are experiencing are often passed along to the appraisal firm. Frequently, this is manifested in the appraisal request itself: requests for certain “types” of appraisals that would be misleading in a given set of circumstances, requests for a guarantee of a clients’ pre-determined opinion of value, changes in the definition of a type of value, approaching an appraisal assignment for a purpose for which it will not actually be used, etc.. An appraisal performed for the clients’ desired outcome rather than actual market conditions and for the proper purpose is not only misleading to any end user and takes away any real value in the appraisal, but it is also unethicaland comes with sometimes serious consequences.
Most notably, it is the inflated values that will cause the greatest damage down the road. Not only can inflated values skew an entire market segment, they can leave investors and lenders holding debt backed by assets that are worth much less than they think. We’ve repeatedly seen, over the history of the helicopter industry, the devastation this practice causes for everyone involved. While values which have been overly discounted may have somewhat less harmful effects, they still have a negative impact on true resale value for a particular model or a whole segment of the market, especially for models that are not frequently traded. They may also bring the wrath of the regulatory authorities with arguments of “bargain purchases” and the resulting tax implications.
Market perspectives will vary from one business to the next. An operator may have a different opinion than a private owner, who may have a different opinion than a lender or lessor. The appraiser exists to bring clarity to those varying perspectives by interpreting the value of the helicopter in relation to the market as it actually exists. Appraisers should come from a completely unbiased position, free from outside influences, using only facts, knowledge, and experience to develop an opinion of value. As a result, an appraiser will never be able to please every client’s value result expectations. Professional and ethical behavior is the only way the appraisal profession can maintain the public’s trust.
Appraisers and firms with inadequate qualifications or experience, or appraisers willing to purposely misrepresent values to satisfy the client’s specific needs tend to be more commonplace in a depressed market. It is important to make sure that you are not only employing a qualified and experienced appraiser, but one that maintains the highest standards. A reputable appraisal firm will not change their methodology and values to suit the needs of the client.
End users of an appraisal should take time to read the complete report. Note hypothetical conditions and assumptions, explanations of the methodology, definitions, and purpose used in the valuation process. Are all of these parameters appropriate for the situation and purpose? If the previous value results are available, compare them to the current value results. Significant value changes from one appraisal to the next may help identify potential issues. Watching for problem areas becomes even more important for lessors, lenders, and operators that require annual or bi-annual appraisals.
Differing appraisal methodologies, governing bodies, regulatory authorities, certifications and accreditations, U.S. Standards ( https://www.appraisalfoundation.org/ ) vs International Standards (https://www.ivsonline.org/), are all factors that influence how values are determined. Knowing your appraisal firm and its specialties is key to the accuracy of the values you will receive. While true market realities can be painful, knowing those realities, accepting them, preparing and dealing with them will not only ensure that the industry continues to have a healthy recovery, but it will help it recover faster, and avoid future negative effects of improperly and unethically performed appraisals.
About HeliValue$, Inc.
As pioneers of the helicopter appraisal process and methodology, HV$ has provided helicopter and parts appraisals for four decades. Our ASA accredited staff annually appraise over 2,500 helicopters. HV$ is the trusted advisor and industry-wide interpreter for an international clientele of manufacturers, vendors, helicopter operators, banks, leasing and insurance companies, and aviation law firms.
HV$ has also continually published The Official Helicopter Blue Book® since 1979. Information regarding specifications, current and historical resale values, current and historical manufacturer pricing, component overhaul and retirement intervals, and hourly maintenance costs are available for most of the 200 models covered in the Blue Book.
HeliValue$, Inc. held its first quarter Blue Book pricing review on April 5, 2018. Resale pricing adjustments were made for the following models:
Model |
Yrs. of Mfg. Affected |
Airbus AS332L1 |
1987-2010 |
Airbus AS350BA |
1991-1999 |
Airbus AS350B2 |
1989-2002 |
Airbus SA365C |
1977-1981 |
Airbus AS365N |
1981-1986 |
Airbus SA365N1 |
1987-1990 |
Airbus AS365N2 |
1990-2003 |
Airbus EC130B4 |
2001-2011 |
Airbus EC135P1 |
1996-2002 |
Airbus EC135T1 |
1996-2002 |
|
|
Bell 206BIII |
1977-1998 |
Bell 407 |
1996-2014 |
Bell 407GX |
2011-2014 |
Bell 429 |
2010-2014 (Configuration Values Only) |
Leonardo AW119Kx |
2012-2015 (Configuration Values Only) |
**Piston helicopters are still under review. Once updates have been made, a list of affect aircraft will appear in a new newsletter.
Resale pricing adjustments are based on actual sales transactions and current market conditions such as overall trends in asking prices, increase or decrease in supply, demand, and sales volume. We obtain sales pricing data from owners and operators, lenders and lessors, brokers and equipment manufacturers worldwide.
While we do review all models each quarter, frequently traded models are updated as soon as they begin to show variation from the previously published values. Stay up-to-date on resale pricing changes by purchasing an annual subscription.
The resale market, in general, has enjoyed an uptick in activity throughout the first quarter of 2018. The single turbine markets are seeing more activity than we’ve seen in the previous four quarters. Notably, older vintages of the Airbus AS350 series are experiencing the largest increase in activity as well as a bump up in sales prices. The newer vintages are not experiencing the same level of activity. However, as the older aircraft move off the market it’s likely that newer aircraft will begin to see similar activity. Other models in this category that have seen an increase in activity this past quarter are the older Bell 206 Jet Rangers, Bell 206 Long Rangers, Bell 407 series, MD 500E, and Robinson R66.
In the light twin category there has been sales activity with the Airbus EC135P1/T1 series, EC135P2/T2 series, EC145T1, Leonardo A109E, Bell 412EP, 429, and MD 900/902. The medium market continues to be soft with some movement of VIP configured aircraft. It’s worth remarking that there has been a noticeable increase of twin-engine offshore aircraft that are being sold and converted to alternate mission types such as SAR and VIP.
After several years in the doldrums, the heavy twin market has seen a few resale transactions in the first quarter. Two Airbus AS332L1 series, one EC225LP, and one Sikorsky S61N. Any other movement in the heavy market was within the leasing sector.
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HeliValue$, Inc. held its fourth quarter Blue Book pricing review on January 8, 2018. Resale pricing adjustments were made for the following models:
Bell 206B III
Airbus AS-332L1
Leonardo AW109E, AW119 Koala, AW119 Kx
MD 900/902
Sikorsky S92A
Resale pricing adjustments are based on actual sales transactions and current market conditions such as overall trends in asking prices, increase or decrease in supply, demand, and sales volume. We obtain sales pricing data from owners and operators, lenders and lessors, brokers and equipment manufacturers worldwide.
While we do review all models each quarter, frequently traded models are updated as soon as they begin to show variation from the previously published values. Stay up-to-date on resale pricing changes by purchasing an annual subscription.
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After our fourth quarter meeting on January 8, our acting president, Jason Kmiecik and chairman, Sharon Desfor attended Helicopter Investor in London. As always, it was a valuable opportunity to meet up with many of the of financial institutions, companies, operators, and individuals involved in helicopter finance. The conference showcases the pressing issues and questions facing the current helicopter market, and this year was certainly no exception. For a list of the many interesting and informative topics covered at this year's conference, you can see the full agenda here. It also turned out to be the most well-attended Helicopter Investor since its first stand-alone event in 2013.
Through various panel discussions and conversations with other attendees, it became evident that the finance and lease communities have mostly come to terms with the lasting recession in the oil and gas industry which has heavily impacted the demand and values of offshore equipment. There were interesting discussions about the mixed opinions of the introduction of the super medium class of aircraft to the offshore market. Other interesting topics included shifts in various market segments, especially EMS, and the dominance of leasing as an option over purchasing and its impact on today's market. All subjects which will be discussed in greater detail in our article to be released during HeliExpo.
The increased popularity of leasing continues to affect resale market activity. More people leasing means fewer people buying. However, light and medium aircraft tend to show more market stability because they are not as heavily impacted by leasing activity and oil prices. Generally, the resale market continues to be weak mainly due to the unusually high supply of aircraft on the market.