ASSET INSIGHT INTRODUCES AIRCRAFT “FOR SALE”GRADING STANDARD New Index Enables Buyers and Seller to Compare Aircraft Objectively
AMISSVILE, VA (April 16, 2013) Asset Insight, Inc. (www.assetinsightinc.com) today announced its new service, the “Comparable Industry Average Index”(“Comp Index”) enabling aircraft buyers, sellers, and other interested entities to compare objectively the projected maintenance costs of any aircraft with the average cost of other similar make and model aircraft listed for sale. “For entities seeking to acquire or sell an aircraft, the Comp Index allows them to use an aircraft’s current condition to determine its projected maintenance financial liability and then compare that to the average projected liability for similar aircraft listed for sale,”said Tony Kioussis, President of Asset Insight, Inc. “An aircraft’s current maintenance condition is a major component of its asset value. Our new Comp Index enables buyers, sellers, and financiers to use an aircraft’s current maintenance condition to accurately value other comparable aircraft listed for sale.”
This new capability complements the company’s industry-standard Asset Grading System Process ("AGSP") (Patent Pending) which provides parties holding, or planning to hold, a financial interest in an aircraft a simple-to-understand, uniform method for evaluating and comparing different aircraft’s maintenance status. Now buyers and lessees can select the aircraft make and model best suited for their flight missions, and then optimize that asset’s financial performance.
The AGSP is based on patented algorithms analyzing current age, the hours and cycles on an aircraft’s Major Sectors and Systems –airframe, engine(s), propeller(s), APU, paint, and interior –as well as the cost to repair or replace parts with no defined life. Once the aircraft data is entered into the program, the AGSP enables buyers, sellers and financiers to:
- Objectively analyze and grade an aircraft’s maintenance condition relative to the manufacturer’s approved maintenance program.
- Compare any aircraft’s maintenance condition to another aircraft listed for sale to justify the asking or offering price for a listed aircraft.
Additionally, the AGSP provides current owners an objective basis upon which to decide whether to improve an aircraft’s technical value by investing in maintenance improvements. The Asset Insight Index, derived from the AGSP, provides an objective measure of an aircraft’s Financial Exposure going forward –that is, the financial liability which accrues to the owner with respect to future scheduled maintenance events. The 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 as defined by the manufacturer’s schedule.
- An Asset Financial Condition Score (ATFC Score) that measures the aircraft’s maintenance financial rating relative to that Optimal Maintenance Condition.
- An Asset Technical Financial Exposure Value (ATFE Value) that measures the owner or lessee’s financial exposure based on the aircraft’s current Maintenance Condition (the aircraft’s current accrued maintenance liability).
"We will be introducing additional analytical services over the next few months enabling those with a financial interest in an aircraft the ability to decide how best to optimize the value of that asset the same way they would manage any other valuable financial instrument,”stated Kioussis. “Those services will be made available for most business aircraft, including jets, turboprops, helicopters and piston aircraft."
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.