When Maintenance Becomes an Opportunity
In an aircraft transaction, maintenance is often viewed simply as a cost. Yet major maintenance events can also present opportunities for both buyers and sellers.
Large inspections, such as C Checks on applicable aircraft, as well as landing gear overhauls, engine inspections and other scheduled events, can represent significant expenditure. Their timing therefore deserves careful consideration when an aircraft is being prepared for sale or evaluated for acquisition.
For the Seller
An upcoming major inspection can initially appear to be a disadvantage. However, completing the work prior to a transaction can significantly improve an aircraft’s appeal by giving the prospective buyer greater visibility on its near-term maintenance requirements.
A recently completed inspection, supported by comprehensive records, can provide confidence that significant maintenance requirements have been addressed. In certain circumstances, this can also help differentiate an aircraft from comparable opportunities.
There are also situations where completing a major inspection immediately before a sale may not be the most efficient approach. Depending on the aircraft, timing and scope of the work, it may be more appropriate to structure the transaction with the inspection approaching, allowing the buyer to undertake the work according to their own requirements.
For the Buyer
For a buyer, an aircraft approaching a major inspection should not necessarily be considered a negative.
It can create an opportunity to negotiate the acquisition price with the anticipated maintenance expenditure in mind, while allowing the buyer to have greater involvement in the choice of maintenance facility and the scope of the work.
The inspection itself can also provide valuable insight into the aircraft’s condition. Findings, maintenance history and the remaining inspection calendar should all form part of the overall assessment—not simply be considered as separate technical matters.
Looking Beyond the Purchase Price
The true cost of acquiring an aircraft extends beyond the agreed purchase price. Understanding what maintenance is due, when it is due and what it may require can materially change the economics of a transaction.
This is where experienced representation becomes particularly important. A knowledgeable broker, working alongside technical expertise, can assess the maintenance position, anticipate its financial implications and help determine how it should be reflected in the transaction.
At Opus, we consider the maintenance calendar as an integral part of the acquisition or sales process. By combining commercial experience with in-house technical expertise, we help our clients understand not only what an aircraft is worth today, but what the upcoming maintenance requirements may mean for its value tomorrow.
