Valuations

Award-winning aviation valuation services from our ISTAT-certified experts

IBA has one of the largest teams of certified senior appraisers in the industry who partner with aviation and financial sector clients globally to give independent advice on wide-ranging, complex asset valuation requirements. From strategic fleet selection, transaction due diligence, Asset Backed Securities (ABS) portfolio appraisal, and operational decision-making through to annual portfolio and financial compliance monitoring, we'll have you covered.

Don't just take our word for it; IBA was voted Appraiser of the Year in 2012, 2018, 2020, 2021, and 2022. We understand our clients' valuation needs can be complicated, will often demand prompt attention, and may change abruptly with evolving events.

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Representing our involvement in 90% of ABS structures

4,500+

Transaction and Portfolio Valuations in 2019

35+

Years of Values and Maintenance Data

Get accurate, unbiased valuations for diverse aviation assets

A powerful mix of specialist valuation skills and commercial and industry knowledge; that's what sets our people apart. With access to IBA Insight's unique historical and contemporary aviation intelligence, we make an asset's essential value transparent. Impartial, flexible valuations of individual and aggregated assets can be yours at the touch of a button. Valuing aviation assets is a specialist practice that requires an in-depth understanding of global markets. Even the challenge of local or international political, economic, health, or environmental turbulence won't force our judgment off course. You can be assured our collaboration will be driven by independent data and rich, comprehensive experience.

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Valuation definitions fluctuate with external circumstances; buoyant, stable markets will produce different asset values to those during a slump or in distressed, fire sale conditions. Our experts will know which valuation definitions to apply and give clients solid, independent advice whatever the circumstances.

Asset Expertise includes:

Our intelligence platform, IBA Insight, offers extensive up-to-date and historical values data. You'll discover real-time global market opportunities, aircraft liquidity by class, model, and region, flight and utilisation activity, and risk profiles.

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IBA's Engines Explained: The Outlook

Webinars18Apr 2024

IBA's Engines Explained: The Outlook

This webinar, moderated by Mike Yeomans, and featuring Kane Ray and Jamie Davey, discusses the latest trends in the aviation engine market, highlighting the impacts of increased demand for air travel and OEM/MRO supply chain bottlenecks on aircraft engine values. Summary Much like the aircraft they power, the trend is for spare engines with existing leases to be extended due to the service extension of current-generation aircraft, increased shop visit demand, new-generation engine quality issues, and a lack of spare parts. These challenges have caused rises in market values and lease rates with IBA identifying evolving trends for supporting future rises. One of these trends is the expected demand for engine shop visits in the coming years. Lease rates have largely recovered to pre-COVID levels, with the CFM56-7B engine and the V2500-A5 engine families being notable movers. The panellists also discussed the shift in the trading market, the wide-body market, new-generation engine values, and the regional market. Speakers Mike Yeomans, Director - Valuations and Consulting, IBA Kane Ray, Head of General Aviation and Aftermarket, IBA Jamie Davey, Manager - Engines & Parts, IBA Key Takeaways Aviation Engine Demand Surge: The aviation engine market is experiencing a surge in demand due to increased air travel and the impact of COVID-19, leading to a rise in lease extensions due to a lack of engine supply. Engine Supply Shortage Factors: Factors such as increased shop visit demand, new generation engine quality issues, and a lack of spare parts in the MRO world are causing a shortage in engine supply. Increasing Market Values: Despite the challenges, market values are increasing due to the lack of supply, with even slower-to-recover segments such as the widebody market now experiencing demand, i.e. the General Electric GE90-115B powering the Boeing 777-300ER. Rising Engine Shop Visits: Engine shop visit demand is on the rise, with the narrowbody fleet expected to see further increases in the upcoming years. Recovered Lease Rates: Lease rates have recovered to pre-COVID levels for many engine variants, with engines like the CFM56-7B and the V2500-A5 seeing lease rate increases. Mature Engine Demand Increase: In both narrowbody and widebody markets, service extensions for mature aircraft have led to some significant increases in market values. This is most evident for mature engine variants with existing passenger fleets. Turboprop Engines Demand: The regional market is experiencing an increase in demand for turboprop engines, impacting market values and lease rates, with operators trying to find lift wherever possible. "The (engine) leasing market is currently experiencing a lot of lease extensions due to a lack of engine supply, particularly for current generation engines. This lack of supply is being caused by factors such as increased shop visit demand, new-generation engine quality issues, and a lack of spare parts in the MRO world. Despite these challenges, market values are increasing due to the lack of supply.” Watch On-demand Click here

Aircraft Values & Lease Rates: February 2024

Articles

Aircraft Values & Lease Rates: February 2024

Where are aircraft values and lease rates going in 2024? The general sentiment for 2024 is that values and leases will continue to soar throughout 2024 with this movement attributed to several industry factors. This includes the current tight supply, driven by lease extensions, current engine reliability issues and a lack of new aircraft deliveries. In our aviation market update webinar for Q1 2024, IBA's specialist aircraft valuations and appraisal team shared the latest updates for commercial narrowbody and widebody aircraft values. Here’s how the individual aviation asset classes have performed over the last year and the forward outlook for this year. Narrowbody Aircraft Market values Source: IBA Insight & IBA Research (Percentages represent change in value over previous 12 months) There has been a growth in new generation narrowbody aircraft values, particularly for the 737 MAX 8 and the A320neo models, which are closely matched in terms of Market Value. Specific aircraft valuations are influenced by aircraft specifications such as Maximum Take-Off Weight (MTOW) and engine thrust, along with the nature of the transaction and the motivations of the participants, leading to potential variations. After robust gains in 2023, there is an optimistic outlook for continued growth in 2024, extending to both the A320ceo and the 737NG. In the mid-life narrowbody aircraft segment, there has been a significant increase in aircraft values throughout 2023, with further gains projected for 2024. This suggests a sustained progression. Operators are demonstrating interest in older aircraft, even those in less-than-ideal conditions, as they strategically acquire assets from the secondary market with plans for subsequent investments in their serviceability. This trend reflects a proactive approach from airline operators, as they anticipate future returns on their investments. Lease rates Source: IBA Insight & IBA Research (Percentages represent change in value over previous 12 months) Narrowbody aircraft lease rates have been characterised by a significant upward trend in 2024, particularly for the 737 MAX 8 and A320neos. IBA forecasts an increase to $410,000 per month by July 2024, signalling substantial growth. The A321neo specifically is experiencing a surge, with lease rates already in the mid-$400,000s range expected to increase as the year progresses. This is partly driven by tight supply, due to ongoing production rate recovery, and the elevated interest rate environment. In the mid-life segment, lease rates have also seen a robust increase, especially for the A320 family (A320 and A321), with mid-life examples registering over 20% annual growth in some cases. The grounding of GTF-powered aircraft and operators extending leases to cope with supply constraints in the secondary market has fuelled this growth in lease rates. While this has caused lease rates for the A320ceo to approach parity with the 737-800, the rate of growth is anticipated to cool off, as the year progresses, reaching a plateau in the middle of the year. Lease rates for mid-life aircraft are climbing, from above $200,000 to the mid-$200,000s range. Widebody Aircraft Market values Source: IBA Insight & IBA Research (Percentages represent change in value over previous 12 months) In the widebody segment, we have identified a recovery in the market values of current-generation aircraft, that is expected to continue into the middle of the year. Notably, A350-900 values are closing in on those of the Boeing 787-10, erasing the latter’s premium. The continuing recovery in widebody aircraft values also mirrors the trends seen for narrowbody aircraft last year. The flurry of orders, especially for the A350 and Boeing 787, echoes the strong demand witnessed in the narrowbody segment, and while the values have not fully returned to pre-pandemic levels, there is room for further growth into the middle of the year. IBA has seen a robust recovery in the mature widebody segment, particularly for mid-life examples. Market values for these assets are expected to have more than doubled in 12 months by mid-year, representing one of the most substantial percentage changes in the market. Acquisitions made during the pandemic at lower prices have proven to be astute investments, given the current market dynamics. Notably, the A330 and the Boeing 777-300ER are experiencing a strong uptick in values, driven in part by the solid performance of the value of their engines, which have rebounded significantly. Lease rates Source: IBA Insight & IBA Research (Percentages represent change in value over previous 12 months) Widebody aircraft lease rates demonstrate a positive outlook in 2024. There has been a notable shift for A330s in 2021 and 2022 to rates now approaching pre-2019 and which are expected to surpass by July 2024. On the Boeing side, the 777-300ER is experiencing a similar upward trend, with rates moving closer to those for a typical 12-year-old aircraft in 2019 and anticipated to surpass 2019 levels by mid-year. A significant driver of the lease rates is the scarcity of available aircraft, characterised by a market dominated by lease extensions rather than new placements. Some extensions surpass $500,000, with operators showing a strong motivation to retain their aircraft, given the limited supply of new aircraft entering the market. Transaction volumes are on the rise, particularly on the lessor trading side, indicating increased activity in the market. While lease placements may be lower as operators opt to extend and retain their current fleet, the overall trend suggests a strengthening market with an uptick in values. This positive trajectory extends to both narrowbody and widebody aircraft, highlighting a robust and evolving landscape in the widebody aircraft lease rate market for the year ahead. Summary The narrowbody and widebody aircraft market in 2024, both exhibits growth and evolving dynamics. Narrowbody aircraft, such as the 737 MAX 8 and the A320neo, are focal points for this growth, with market values influenced by various factors, including inflationary pressures and market demand. Narrowbody aircraft lease rates, driven by factors like production rate recovery, supply constraints, and operator lease extension strategies, contribute to a dynamic and evolving landscape throughout 2024. On the widebody side, the market showcases recovery, convergence in values between key models, and substantial growth in mature widebody aircraft values, emphasising the resilience and evolution of the overall market landscape. To learn more about our latest aircraft values, including turboprop and regional aircraft values, click here to watch the full webinar. If you have any further questions, comments, or feedback, please get in touch with Mike Yeomans.

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Related content

IBA's Engines Explained: The Outlook

Webinars18Apr 2024

IBA's Engines Explained: The Outlook

This webinar, moderated by Mike Yeomans, and featuring Kane Ray and Jamie Davey, discusses the latest trends in the aviation engine market, highlighting the impacts of increased demand for air travel and OEM/MRO supply chain bottlenecks on aircraft engine values. Summary Much like the aircraft they power, the trend is for spare engines with existing leases to be extended due to the service extension of current-generation aircraft, increased shop visit demand, new-generation engine quality issues, and a lack of spare parts. These challenges have caused rises in market values and lease rates with IBA identifying evolving trends for supporting future rises. One of these trends is the expected demand for engine shop visits in the coming years. Lease rates have largely recovered to pre-COVID levels, with the CFM56-7B engine and the V2500-A5 engine families being notable movers. The panellists also discussed the shift in the trading market, the wide-body market, new-generation engine values, and the regional market. Speakers Mike Yeomans, Director - Valuations and Consulting, IBA Kane Ray, Head of General Aviation and Aftermarket, IBA Jamie Davey, Manager - Engines & Parts, IBA Key Takeaways Aviation Engine Demand Surge: The aviation engine market is experiencing a surge in demand due to increased air travel and the impact of COVID-19, leading to a rise in lease extensions due to a lack of engine supply. Engine Supply Shortage Factors: Factors such as increased shop visit demand, new generation engine quality issues, and a lack of spare parts in the MRO world are causing a shortage in engine supply. Increasing Market Values: Despite the challenges, market values are increasing due to the lack of supply, with even slower-to-recover segments such as the widebody market now experiencing demand, i.e. the General Electric GE90-115B powering the Boeing 777-300ER. Rising Engine Shop Visits: Engine shop visit demand is on the rise, with the narrowbody fleet expected to see further increases in the upcoming years. Recovered Lease Rates: Lease rates have recovered to pre-COVID levels for many engine variants, with engines like the CFM56-7B and the V2500-A5 seeing lease rate increases. Mature Engine Demand Increase: In both narrowbody and widebody markets, service extensions for mature aircraft have led to some significant increases in market values. This is most evident for mature engine variants with existing passenger fleets. Turboprop Engines Demand: The regional market is experiencing an increase in demand for turboprop engines, impacting market values and lease rates, with operators trying to find lift wherever possible. "The (engine) leasing market is currently experiencing a lot of lease extensions due to a lack of engine supply, particularly for current generation engines. This lack of supply is being caused by factors such as increased shop visit demand, new-generation engine quality issues, and a lack of spare parts in the MRO world. Despite these challenges, market values are increasing due to the lack of supply.” Watch On-demand Click here

Aircraft Values & Lease Rates: February 2024

Articles

Aircraft Values & Lease Rates: February 2024

Where are aircraft values and lease rates going in 2024? The general sentiment for 2024 is that values and leases will continue to soar throughout 2024 with this movement attributed to several industry factors. This includes the current tight supply, driven by lease extensions, current engine reliability issues and a lack of new aircraft deliveries. In our aviation market update webinar for Q1 2024, IBA's specialist aircraft valuations and appraisal team shared the latest updates for commercial narrowbody and widebody aircraft values. Here’s how the individual aviation asset classes have performed over the last year and the forward outlook for this year. Narrowbody Aircraft Market values Source: IBA Insight & IBA Research (Percentages represent change in value over previous 12 months) There has been a growth in new generation narrowbody aircraft values, particularly for the 737 MAX 8 and the A320neo models, which are closely matched in terms of Market Value. Specific aircraft valuations are influenced by aircraft specifications such as Maximum Take-Off Weight (MTOW) and engine thrust, along with the nature of the transaction and the motivations of the participants, leading to potential variations. After robust gains in 2023, there is an optimistic outlook for continued growth in 2024, extending to both the A320ceo and the 737NG. In the mid-life narrowbody aircraft segment, there has been a significant increase in aircraft values throughout 2023, with further gains projected for 2024. This suggests a sustained progression. Operators are demonstrating interest in older aircraft, even those in less-than-ideal conditions, as they strategically acquire assets from the secondary market with plans for subsequent investments in their serviceability. This trend reflects a proactive approach from airline operators, as they anticipate future returns on their investments. Lease rates Source: IBA Insight & IBA Research (Percentages represent change in value over previous 12 months) Narrowbody aircraft lease rates have been characterised by a significant upward trend in 2024, particularly for the 737 MAX 8 and A320neos. IBA forecasts an increase to $410,000 per month by July 2024, signalling substantial growth. The A321neo specifically is experiencing a surge, with lease rates already in the mid-$400,000s range expected to increase as the year progresses. This is partly driven by tight supply, due to ongoing production rate recovery, and the elevated interest rate environment. In the mid-life segment, lease rates have also seen a robust increase, especially for the A320 family (A320 and A321), with mid-life examples registering over 20% annual growth in some cases. The grounding of GTF-powered aircraft and operators extending leases to cope with supply constraints in the secondary market has fuelled this growth in lease rates. While this has caused lease rates for the A320ceo to approach parity with the 737-800, the rate of growth is anticipated to cool off, as the year progresses, reaching a plateau in the middle of the year. Lease rates for mid-life aircraft are climbing, from above $200,000 to the mid-$200,000s range. Widebody Aircraft Market values Source: IBA Insight & IBA Research (Percentages represent change in value over previous 12 months) In the widebody segment, we have identified a recovery in the market values of current-generation aircraft, that is expected to continue into the middle of the year. Notably, A350-900 values are closing in on those of the Boeing 787-10, erasing the latter’s premium. The continuing recovery in widebody aircraft values also mirrors the trends seen for narrowbody aircraft last year. The flurry of orders, especially for the A350 and Boeing 787, echoes the strong demand witnessed in the narrowbody segment, and while the values have not fully returned to pre-pandemic levels, there is room for further growth into the middle of the year. IBA has seen a robust recovery in the mature widebody segment, particularly for mid-life examples. Market values for these assets are expected to have more than doubled in 12 months by mid-year, representing one of the most substantial percentage changes in the market. Acquisitions made during the pandemic at lower prices have proven to be astute investments, given the current market dynamics. Notably, the A330 and the Boeing 777-300ER are experiencing a strong uptick in values, driven in part by the solid performance of the value of their engines, which have rebounded significantly. Lease rates Source: IBA Insight & IBA Research (Percentages represent change in value over previous 12 months) Widebody aircraft lease rates demonstrate a positive outlook in 2024. There has been a notable shift for A330s in 2021 and 2022 to rates now approaching pre-2019 and which are expected to surpass by July 2024. On the Boeing side, the 777-300ER is experiencing a similar upward trend, with rates moving closer to those for a typical 12-year-old aircraft in 2019 and anticipated to surpass 2019 levels by mid-year. A significant driver of the lease rates is the scarcity of available aircraft, characterised by a market dominated by lease extensions rather than new placements. Some extensions surpass $500,000, with operators showing a strong motivation to retain their aircraft, given the limited supply of new aircraft entering the market. Transaction volumes are on the rise, particularly on the lessor trading side, indicating increased activity in the market. While lease placements may be lower as operators opt to extend and retain their current fleet, the overall trend suggests a strengthening market with an uptick in values. This positive trajectory extends to both narrowbody and widebody aircraft, highlighting a robust and evolving landscape in the widebody aircraft lease rate market for the year ahead. Summary The narrowbody and widebody aircraft market in 2024, both exhibits growth and evolving dynamics. Narrowbody aircraft, such as the 737 MAX 8 and the A320neo, are focal points for this growth, with market values influenced by various factors, including inflationary pressures and market demand. Narrowbody aircraft lease rates, driven by factors like production rate recovery, supply constraints, and operator lease extension strategies, contribute to a dynamic and evolving landscape throughout 2024. On the widebody side, the market showcases recovery, convergence in values between key models, and substantial growth in mature widebody aircraft values, emphasising the resilience and evolution of the overall market landscape. To learn more about our latest aircraft values, including turboprop and regional aircraft values, click here to watch the full webinar. If you have any further questions, comments, or feedback, please get in touch with Mike Yeomans.

Changing Tides: Business Jets Experience a Dip in Demand

Articles

Changing Tides: Business Jets Experience a Dip in Demand

With 2023 now concluded, a retrospective analysis of the trends and developments within the business jet sphere is in order. By all accounts it has certainly been an interesting year in this market, with IBA observing a downshift in values, a stark contrast to the inflated prices witnessed in 2021 and 2022. However, despite what we usually see post-downturn, the current decline in values hasn’t necessarily followed the expected bounce-back trend we’ve come to expect. How did the GFC affect business jet values? Following the onset of the 2008 financial crisis, the business jet market experienced a significant slide in its prospects. During this time, owners were looking for the exits as stock markets plummeted, personal portfolios hit, and uncertainty were at all time highs. Between 2008 and 2009, 18% of the fleet was for sale which was the highest recorded of recent times. This situation was exacerbated by lenient lending terms, which facilitated the purchase of aircraft by individuals lacking strong financial stability. Many owners found themselves unable to maintain payments or justify retaining their corporate jets. Source: GAMA/Jetnet/IBA Sources and Analysis The chart above shows the relationship between the number of business jet deliveries and the average percentage of in-operation jets available for sale between 2008 and 2018. A surge in deliveries can be picked out in 2008, followed by a high percentage of jets for sale, a direct correlation linked to the global financial crisis. How did the pandemic affect values? The gradual decrease in jets available between 2012 to 2020 suggests a return to market balance despite delivery fluctuations, which would ordinally indicate increased demand and market stability. Enter the recent global COVID-19 pandemic, which has considerably impacted by the business jet market, and added a separate layer of market factors. During this period, there was a conspicuous rise in the use of business jets for travel, diverging from the traditional reliance on commercial airline flights. However, with the pandemic coming to an end, consumers have returned to favouring commercial air travel once again. Source: GAMA/Jetnet/IBA Sources and Analysis 2023 (F) – As GAMA have not released Q4 2024 deliveries, IBA has forecasted 2023 deliveries. As shown in the table above, the sizable drop in business jet deliveries in 2020 meant the secondary market saw heightened activity from 2020 to 2022. This was due to many reasons, however, one being the high levels of liquidity, leading corporations and high-net-worth individuals to capitalise on new opportunities. Business jets emerged as an attractive asset class for parking cash due to their stability and potential for value retention. Moreover, the surge in the secondary market was also driven by individuals seeking liberation from the various restrictions imposed on air travel. As the airlines slashed their schedules and reduced their routes, private jet demand only strengthened. There was also an influx of younger individuals entering the market. It will be interesting to see if this trend continues. Last year saw the business jet market spike in inventory levels, surging from 3.85% in 2022 to 6.16% by the end of 2023. With values softening and buyers gaining more time to assess their options, sellers are also adjusting their asking prices in response. However, appetite is still strong, especially with the growing shifts across individual geographic regions. Looking ahead The business jet market today is a very different one to 2008, where both values and demand rely heavily on the specific type and age of aircraft. The decline in values suggests a potential trend toward market equilibrium, indicating a more balanced market scenario. While the United States continues to dominate the space, the likes of Saudia Arabia and India are the ones to watch for 2024. The upcoming election cycle in the US will be fascinating to watch from a trading perspective, although while there is no trend to indicate that it will affect the number of transactions, the economic environment is still expected to play a huge part. IBA predicts the main talking points for this year to be the escalation of geo-political issues currently occurring across the world, which could hinder the purchases of aircraft. Though inventory levels are likely to increase, it will most likely reach its equilibrium of around 10% (pre-covid levels). Furthermore, the default of a major fleet operator could be a major concern in the used aircraft sales market. A situation such as this was narrowly avoided last year when Delta bought ‘Wheels Up’, in a last-minute deal. Large operators would typically have significant number of aircraft, so if one was to fail, this would cause huge number of aircraft to flood the market. Therefore, this oversupply would drive down the prices, as sellers compete to offload their assets. Overall, 2024’s appetite for business jets is still a promising indicator, but more so for newer aircraft. This is because customers are more after comfort, the latest technological advancements and potential long term value retention. With many first-time aircraft owners retaining their assets post-pandemic, we can expect values to remain relatively strong and most likely continue throughout the year. Voted five times Appraiser of the Year, IBA’s experienced valuations team, including our Senior ISTAT Certified Appraisers, have access to real-time data for more accurate valuations. We partner with aviation and financial sector clients globally to provide independent advice on valuation requirements, ranging from strategic fleet selection, sell and buy-side transactions and operational decisions, to annual portfolio monitoring and financial compliance. Learn more about IBA Valuations.