London/Dublin/Tokyo – September 9th 2019: IBA Group, the independent aviation advisory, valuation, and consulting firm has launched iQ Engines. This unique module combines IBA’s deep industry knowledge and values expertise to guide stakeholders on engine values.
Terry Dawson, Managing Director – Digital at IBA, leads the Firm’s data intelligence services and business strategy for the IBA.iQ platform. He comments, “Engines form a substantial proportion of an aircraft’s value ranging from 40 to 50% when new to over 80% when the aircraft reaches sunset stage. The operating life of an engine can be extended with qualified maintenance to restore much of its value; making aircraft engines an attractive and relatively secure investment proposition.”
Having an accurate picture of historical, current and future values is essential for those buying, selling, financing, investing in or operating aircraft engines. The iQ Engines module combines IBA’s core expertise in aircraft and engine appraisals with market and data intelligence to analyse factors that can impact the value of aircraft engines.
IBA.iQ clients can access single engine or portfolio valuations by engine type, thrust and variant.
Financiers and owners expect to be able to closely monitor the value of their assets and want to keep abreast of factors that could impact that value. As Dawson explains, “This module delivers our deep engine valuation expertise to our customers; helping them to understand and track engine values over time. That capability is critical in a range of activities from making strategic investment/divestment decisions and carrying out market placements, to conducting transaction due diligence and benchmarking asset performance across different engine types. Although valuations do remain relatively stable for popular engine types, major technology changes, performance improvements and maintenance events may result in step changes in value for older variants, and sometimes new models.”
In the highly competitive market of aviation data, it was critical for IBA to develop algorithms within IBA.iQ that would enable users to lock into the technical and financial expertise that is integral to IBA. Senior decision makers within the industry need to have the confidence to access data knowing it is supported by experience and expert analysis. “If major decisions are going to be based on the information extracted from our digital platform, they need to be supported by astute interpretation and commercial judgment.”
If companies can analyse historical values to research investable engine types, market performance and trends, and they can keep up to date with current and forecast values and lease rates to leverage returns, raise finance and identify marketing opportunities – they will drive profitable growth. Dawson goes on to say that there are great opportunities for the future aviation industry in a world where new technology and data combine. “Data analysis has the ability to aid decision making and improve performance – this makes a difference. Investment teams have the confidence to evaluate risk and credit risk much more effectively.”
IBA was established in 1988 to provide independent expert business analysis to the aviation industry. IBA advises commercial and business aviation clients, aircraft/engine manufacturers and operators. Services include asset valuations, technical and engine management, advisory, consulting and commercial services, industry and sector research and analysis. IBA were awarded Airline Economics’ ‘Appraiser of the Year 2018’.
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