Aircraft Collateral Valuation for Lenders and Lessors
Independent, USPAP-compliant appraisals that help lenders size loans, monitor collateral, and protect recovery value.
Know What Stands Behind the Loan
An aircraft loan is only as strong as the collateral behind it. Market value can shift with supply, maintenance status, damage history, and records quality, and the value a lender can actually recover in a liquidation may be well below fair market value.
Western Aviation provides independent aircraft collateral valuations for banks, finance companies, lessors, and credit teams. Our founder ran an aircraft finance branch for GE Capital Aircraft Financing, so our reports answer the questions credit committees actually ask.
Collateral Valuations Across the Life of the Loan
- Loan origination and underwriting
- Refinancing
- Annual or periodic portfolio monitoring
- Loan modifications and workouts
- Default, repossession, and asset recovery
- Lease returns and remarketing
Values Lenders Need
- Fair market value
- Orderly liquidation value
- Wholesale value (forced liquidation value)
- Residual value forecasts
Collateral Risk Factors We Review
- Maintenance status and upcoming major events that affect value
- Engine program enrollment and its effect on value
- Damage history and records gaps
- Market supply and remarketing time
- Aircraft location and condition (onsite appraisals)
Desktop and Onsite Collateral Appraisals
Every collateral valuation is a certified, USPAP-compliant appraisal that meets credit-file requirements. Match the inspection level to the stage of the loan:
| Certified appraisal option | How it fits this service |
|---|---|
| Onsite collateral appraisal | High-value collateral, workouts, and repossessions where condition is uncertain |
| Desktop collateral appraisal | Loan origination and refinancing when condition is known, plus periodic portfolio monitoring |
Your Appraiser: David Fisher, ASA
David Fisher is a former GE Capital Aircraft Financing branch manager, an ASA Senior Accredited Appraiser, and a member of the National Aircraft Finance Association. He has appraised, bought, sold, and brokered aircraft for more than 30 years.
Frequently Asked Questions
What is the difference between fair market value and orderly liquidation value?
Fair market value assumes a normal sale between a willing buyer and seller with reasonable time on the market. Orderly liquidation value estimates what the aircraft would bring in a sale with a limited marketing period, which matters to lenders planning for a possible default.
What is wholesale value?
Wholesale value, also called forced liquidation value, estimates what an aircraft would bring in a quick sale, such as to a dealer, with little or no time to market it. Lenders use it as a worst-case recovery value when sizing loans and planning for a possible default.
How often should aircraft collateral be revalued?
Many lenders revalue annually or when a loan is modified, refinanced, or shows signs of stress. Desktop appraisals make periodic monitoring efficient.
Can you appraise aircraft in repossession or default situations?
Yes. We provide collateral valuations for workouts, repossessions, and remarketing, including onsite inspections when condition is uncertain.
Need a Collateral Valuation?
Tell us about the aircraft, the loan stage, and the values your credit team needs.