Overview

The Aviation Asset Valuation and Aircraft Appraisal Course focuses on the specifics of aviation asset valuations and appraisal methodologies used in the aviation industry, including the appraisal process, three approaches to value, aviation assets, and commercial aircraft valuation and securitization. The use of current readings, discussions, quizzes, and the solving of exercises and problems will be utilized throughout the course. 

The Aviation Asset Valuation and Aircraft Appraisal Course can be taken independently or toward the Certificate of Management in Aviation Accounting and Finance.

What You Will Learn 

Upon completing this course, students will be able to:

• Explain the overall appraisal process
• Differentiate the definitions and uses of values
• Formulate the approaches to asset valuation
• Apply the generic valuation approaches to assets in aviation
• Justify the importance of valuation in aviation asset securitization 

Key Topics

• Definitions and uses of values
• Aviation assets and securitization
• Commercial aircraft valuation

Learning Objectives

• Define an appraisal
• Examine the steps in the valuation process
• Contrast different types of appraisals
• Evaluate different definitions of values
• Describe the uses of values
• Apply appropriate value definitions to various appraisal assignment
• Describe the three approaches to value
• Describe the situations that make a particular approach to value the most suitable
• Explain different forms of depreciation
• Perform adjustments in the sales comparison approach
• Estimate the present value of cash flows in the income approach
• Describe assets in aviation and aerospace that require periodic appraisals
• Evaluate specific features of various aviation assets and required expertise for their appraisals
• Identify the most likely approaches to value when appraising different aviation assets
• Interpret the importance of maintenance status to aircraft value and perform maintenance-related adjustments
• Appraise definitions of commercial aircraft values used in the industry
• Interpret macroeconomic and aircraft-specific variables that affect the values of commercial aircraft
• Explain different types of commercial aircraft appraisals
• Evaluate the characteristics of EETC financing that enhance its performance 
• Compare and contrast characteristics of EETC and Aircraft ABS