ASSET INSIGHT INTRODUCES INNOVATIVE AIRCRAFT GRADING STANDARD
Buyers and Financiers Can Now Objectively &Directly Compare any Aircraft
AMISSVILE, VA (December 11, 2012) Asset Insight, Inc. today announced its revolutionary system enabling buyers, sellers, financial services companies and other entities to accurately evaluate an aircraft’s maintenance condition and thereby make better-informed buying and financing decisions.
Until now, there has been no clearly objective method for evaluating and comparing any make/model aircraft versus another identical or different make/model aircraft. Asset Insight’s new Asset Grading System Process (Patent Pending) provides parties holding, or planning to hold, a financial interest in an aircraft, a simple-to-understand, uniform index for evaluating and comparing different aircraft’s technical conditions. This enables them to select the appropriate aircraft and then optimize that asset’s financial performance.
“Our goal was to create, for the first time, an industry standard that could be used to objectively analyze and grade the maintenance condition of any aircraft and then compare it to any other aircraft,”said Tony Kioussis, President of Asset Insight, Inc. “The Asset Grading System Process (AGSP) does just that. It creates an Asset Insight Index (AI2) value for virtually any make, model and vintage aircraft flying today, a value that scores the current and required maintenance and accrued cost on an objective continuum.”
The AGSP is based on patented algorithms analyzing current age, the hours and cycles on an aircraft’s Major Sectors –airframe, engine(s), propeller(s), APU, paint, and interior –as well as the cost to repair or replace parts with no defined life. The AGSP provides the ability to optimize the asset’s overall financial performance by:
- Objectively analyzing and grading an aircraft’s maintenance condition relative to the manufacturer’s approved maintenance program.
- Comparing any aircraft to another aircraft listed for sale.
- Proving and, if desired, improving an aircraft’s technical rating by addressing Major Sector deficiencies.
- Helping to justify an asking or offer price for an aircraft.
Historically there has been no simple-to-understand, uniform methodology through which a buyer, seller or financier could grade:
- An aircraft with respect to its Optimal Maintenance Condition;
- An aircraft’s Maintenance Condition as it relates to its Financial Exposure;and,
- An aircraft’s Maintenance Condition &Financial Exposure in relation to other aircraft.
Nor could they compare two identical model/type aircraft, manufactured a few years apart but with different total flight hours and/or cycles. The AGSP provides a uniform methodology to determine which aircraft should receive a better Maintenance Condition rating: the older model with lower hours or the younger model with higher hours.
Additionally, the AGSP provides an objective measure as to which aircraft poses the greatest Financial Exposure going forward –that is, the financial liability accrued with respect to future scheduled and unscheduled maintenance events –to its owner and/or financial services company.
This Asset Insight Index is comprised of the following three elements:
- An Asset Technical Condition Score (ATC Score) that measures the aircraft’s maintenance status relative to its Optimal Maintenance Condition.
- An Asset Financial Condition Score (ATFC Score) that measures the aircraft’s financial rating relative to its Optimal Maintenance Condition.
- An Asset Technical Financial Exposure Value (ATFE Value) that measures the aircraft’s financial exposure based on its Maintenance Condition (the financial liability accrued with respect to future scheduled maintenance events versus the estimated maximum cost of future scheduled maintenance).
“The algorithms developed for the AGSP, and the Asset Insight Index standard produced by the AGSP, took over two years to derive”according to Tony Kioussis, “and the massive database required to generate aircraft analyses –compiled through detailed market research –took about another five years to finalize.”
Asset Insight, Inc. (www.assetinsightinc.com) provides asset evaluation and financial optimization services. The company’s “Asset Grading System Standard”(Patent Pending), and related analyses, provides the ability to translate the asset’s technical condition into easy-to-understand, actionable financial information. Asset Insight is independent of any manufacturer, appraisal firm, financial services firm, or technical services facility, enabling it to provide an unbiased view of an asset’s condition with respect to its technical status and related financial exposure. The company is managed by business, technical and financial professionals with significant experience in aviation asset management.