HeliValue$, Inc. held its third quarter Blue Book pricing review on October 15, 2015.  Resale pricing adjustments were made for the models listed below.  To view pricing adjustments, login to your account and visit the models' resale trends page. 

• Agusta - A109C, A109E, AW109SP,AW119K,AW119Ke
• Airbus -  AS332L, AS332L-1, AS332L-2, AS350B2, AS350B3, AS365N1, AS365N2, AS365N3, EC155B, EC155B1, EC225LP
• Bell - 206L-1,206L-3,212,412EP,429,430
• MD - 600N
• Sikorsky - S76C++

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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.  With the information gathered from many different resources, we review each model covered in The Official Helicopter Blue Book®. 

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 to The Official Helicopter Blue Book® www.helivalues.com. 

General Market Comments

In general, most of the reports HeliValue$ has received indicate a slow sales quarter.  Low oil prices continue to have an impact, predominantly on the heavy class of helicopters such as the EC225 and the S-92A. There have been reports of some operators parking the larger aircraft waiting for oil prices to recover.  While there has been an overall slowdown in the offshore market, the majority of the impact is on the exploration side of the industry. 
 
The medium class helicopters have also been affected by oil prices, especially the older aircraft.  Inventory of medium and light twin turbine helicopters has remained steady but still slightly bloated.  Both classes suffer from a lack of interested buyers mostly because there is limited or no secondary market for most of these aircraft.  This is particularly true for the older, high airframe time aircraft.
 
Light single turbine aircraft such as the AS350 series of helicopters have seen some increased sales activity in the third quarter leveling out the resale market inventory.  Older models of this class are still moving off the market much slower than newer models. Asking prices and sales prices continue to fall particularly for the older aircraft.    
 
The light piston aircraft inventory has slightly decreased through the third quarter, and sales pricing remains steady.
 
While there have been some sales, the corporate/VIP market over the past two years for all used helicopters has almost completely stopped trading.  This is the main cause of the increased resale market inventory, especially in the light single and twin turbine markets.  

 
We are interested in any recent sales transactions you would like to report. Every time you buy, sell, lease, finance, or trade a helicopter, and report this information to us, you help update The Official Helicopter Blue Book®. Sales transactions can be reported by emailing [email protected].  All information received is held in the strictest confidence and is only used for our internal review.  The next pricing review is scheduled for January 6, 2016.

HeliValue$, Inc. held its second quarter Blue Book resale pricing review on July 20, 2015.  The models affected are listed below.  If you are a current subscriber, please login to your account and visit the resale trends page for each model to view the adjustments.

Agusta AW109E, AW109SP, AW139.
Airbus AS350B2, AS365N2, EC225LP.
Bell 206L-3, 214B, 407GX, 427, 429, 430.
Kaman K-1200.
Robinson R22 Beta II, R66.
Sikorsky S92A

General Market Comments
Light singles like the Bell 206L-4 and 407 are a seeing a little boost in the short range offshore market.  With the slowing of new deep water offshore exploration contracts, we are seeing some of the mediums (AW139 & B412EP) and the heavies (S92 & EC225LP) being parked until oil prices recover.  Older aircraft such as the Airbus AS332L, AS332L1 and L2, Sikorsky 61N, and the Bell 212 are being replaced with newer aircraft as they become available.  These older aircraft are being moved to an almost nonexistent secondary marketplace.  The Airbus AS350 series and older Bell 407 models continue to have a depressed market.  We have seen some AS332, AS350 series, and AS355 series being parted out due to very low demand and declining resale prices.  The used corporate/VIP market continues to be very weak.

Resale pricing adjustments are based on actual sales transactions and current market conditions such as overall trends in asking prices and increase or decreases in supply, demand, and sales volume. We obtain sales pricing data from owners and operators, lenders and lessors, brokers and equipment manufacturers worldwide.  With the information gathered from many different resources, we review each model covered in The Official Helicopter Blue Book®. 

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 to The Official Helicopter Blue Book®.  

 
We are interested in any recent sales transactions you would like to report. Every time you buy, sell, lease, finance, or trade a helicopter, and report this information to us, you help update The Official Helicopter Blue Book®. Sales transactions can be reported by emailing [email protected]. All information received is held in the strictest confidence and is only used for our internal review.  The next pricing review is scheduled for October 5, 2015.

HeliValue$ will hold its second quarter Blue Book resale pricing review on July 20.  Resale pricing adjustments are based on actual sales transactions and current market conditions such as overall trends in asking prices and increase or decreases in supply, demand, and sales volume. We obtain sales pricing data from owners and operators, lenders and lessors, brokers and equipment manufacturers worldwide. With the information gathered from many different resources, we review each model covered in The Official Helicopter Blue Book®. 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 page. Stay up-to-date on resale pricing changes by subscribing to The Official Helicopter Blue Book® www.helivalues.com.

The Official Helicopter Blue Book®. Sales transactions can be reported by emailing Lindsay Moore or via our online form here.  All information received is held in the strictest confidence and is only used for our internal review.

As originally appeared in Business Aviation Advisor, May/June 2015 (www.bizavadvisor.com)

Finding the Right Appraiser is as Easy as ASA

After the savings and loan crisis in the 1980s, and again in 2008, the banking industry responded with new rules and additional safeguards for better risk management.

One of the most significant changes involves aircraft appraisals.

Prior to 2008, a simple market evaluation by a resale broker, often with just a quick look at the current edition of the Aircraft Blue Book, was sufficient to secure as much as a 90% loan-to-value ratio for a preowned aircraft. That is no longer so.

Today, most banks, leasing companies, and insurance underwriters require that all loan collateral, including business jets, be valued by a qualified, certified appraiser before financing is approved. Those appraisers must comply with the Uniform Standards of Professional Appraisal Practice (USPAP), which was created in 1989 by the Appraisal Foundation, and is the generally accepted standard in Canada and Mexico as well as the U.S.

Two organizations provide such appraiser certification: the International Society of Transport Aircraft Trading (ISTAT), which focuses primarily on commercial airliners; and the American Society of Appraisers (ASA), which teaches, tests, and confers credentials to its members, who conduct professional appraisals for business and personal property valuation. The ASA's Machinery and Technical Specialties division offers the only program to train and certify business aircraft appraisers.

Appraisers earn that Aircraft Specialty accreditation by completing a rigorous curriculum and peer evaluation. ASA-accredited appraisers must adhere to the professional standards set forth by ASA's Code of Ethics and Principles of Appraisal Practice, and well as USPAP (in North America), or the International Valuation Standard elsewhere in the world. The two levels of ASA certification, Accredited Member and Accredited Senior Appraiser, are based on the number of years of appraisal experience, with continuing education courses required to hold either accreditation.

The recent rebound in business jet transaction activity has increased the demand for certified appraisals. To meet that need, two established aviation organizations, Jet Support Services, Inc. (JSSI) (www.jetsupport.com) and Embry-Riddle Aeronautical University (ERAU) (www.erau.edu) co-sponsored and co-hosted two ASA accreditation courses earlier this year, one at ERAU's campus in Daytona Beach, FL, and the other at JSSI's European headquarters in Farnborough, UK, with more courses planned for this fall.

What does this mean for you, the aircraft owner?

If you are interested in monitoring the value of your aircraft, whether for financing, refinancing, or sale; or to verify hull value for insurance coverage, you will need to have your aircraft appraised by an ASA-certified appraiser. This will ensure that you have the most accurate and lender-acceptable data.

On average, expect the appraisal to take about one week, with the physical inspection process usually one full day onsite, and the rest reviewing records. The appraiser will conduct a systematic inspection of the interior and the exterior of the aircraft, including: engine, airframe, avionics, instrumentation, and other systems; as well as provide a methodical review of your aircraft's flight and maintenance log books, FAA registration, title, and owner's documentation. Most business jet appraisers avoid "desktop only" appraisals because the inspection and review of the records is extremely important.

In 2015, the average cost for a full appraisal and inspection – required by most lenders – is about $5,000, perhaps up to $7,500, plus expenses. Be aware, however, that a standard appraisal is not the same as a pre-buy inspection for purchase, which can run between $10,000-$50,000 depending on the size and scope of the work.

Rules for lending have changed dramatically in the past six years. If you have not been in the market recently, know that a proper appraisal will ensure that you secure the right equipment at the right price, while meeting your lender's requirements.

For more information about and to find an accredited Appraiser go to www.appraisers.org or call 800-272-8258. BAA