What documents are essential for valuing an aircraft?

To begin the process, you must provide the Certificate of Registration, Airworthiness Certificate, the latest technical Status Reports (including engines and landing gear), and the complete aircraft logbooks.

How long does the aircraft valuation process take?

Due to the extreme complexity and volume of technical documentation, preparing a professional expert valuation report typically requires between 1 to 3 weeks.

Can individual components like engines be valued separately?

Yes. In standard aviation practice, major components such as Engines, Landing Gear, and the APU frequently hold independent market values and can be appraised completely separately from the airframe.

Is this valuation report accepted by Georgian and international banks?

Yes. The experts featured on Legal.ge strictly adhere to International Valuation Standards (IVS), ensuring that the English or bilingual reports are unconditionally accepted by both local and foreign financial institutions.

Aircraft Valuation in Georgia | Legal.ge

Aircraft Valuation

Aircraft valuation—which encompasses commercial passenger airliners, cargo freighters, business jets (private aircraft), helicopters, and individual aviation engines—represents one of the most complex, exclusive, and highly responsible sectors of property valuation in both global and national markets. In Georgia, where the aviation sector, airport infrastructure, and transit tourist flows are experiencing dynamic growth, aircraft constitute the largest, multi-million-dollar capital assets for airlines, leasing organizations, and private owners. Valuation in the aviation sector differs starkly from the appraisal of any other movable property. The value of an aircraft is determined not solely by its physical age or model, but predominantly by its technical maintenance history, accumulated flight hours, completed flight cycles (take-offs and landings), strict compliance with aeronautical regulations, and the execution status of Airworthiness Directives (ADs). Determining the accurate market, lease, or liquidation value of these highly specific and strictly regulated assets requires absolute expertise in both engineering and international aviation law. An unqualified or inaccurate valuation can lead to catastrophic financial losses when attempting to secure bank loans, finalizing multi-million-dollar lease agreements, or triggering insurance policies. Consequently, the involvement of recognized, independent aviation appraisers is vitally important to ensure transaction transparency and the complete minimization of financial risks.

What This Service Covers

The professional aircraft valuation service is an extremely complex, multi-component, and strictly structured process that requires the full involvement of aviation specialists. This service covers an in-depth investigation of the legal, technical, and financial aspects of the aircraft. Certified expert-appraisers ensure the execution of the following highly specific tasks:

Detailed audit of technical records (Logbooks): An in-depth analysis of flight hours, completed cycles, repair history, and scheduled maintenance records. This is the most critical part of an aviation valuation, because without proper documentation, an aircraft immediately loses the vast majority of its value.
Verification of compliance with Airworthiness Directives (AD/SB): The expert strictly verifies the extent to which mandatory modifications issued by the manufacturer and civil aviation authorities have been executed and properly documented.
Isolated valuation of engines and components: Frequently, aviation engines, landing gear, and Auxiliary Power Units (APU) possess operational lifespans and market values completely independent from the airframe. The service includes the individual calculation of each multi-million-dollar component using Half-life and Full-life methodological approaches.
Physical inspection: Direct visual examination of the aircraft in a hangar or on the apron. The expert evaluates the condition of the fuselage, avionics systems (radio-navigation), interior wear and tear, and the specific cabin configuration.
Global aviation market research: Since aviation is a truly global industry, the expert analyzes international sales, lease rates, and transactions of identical aircraft using specialized global aviation databases.
Formation of the final report: Generating an official expert report in English or a bilingual format that strictly complies with International Valuation Standards (IVS) and is fully acceptable to both local and foreign financial institutions.

Common Real-World Scenarios

In the aviation business and the corporate world, there are numerous critical scenarios when an independent, recognized valuation of an aircraft is an absolute necessity. The most prevalent real-world cases include:

Leasing and aviation financing: The vast majority of airlines acquire aircraft from international leasing companies or banking syndicates. Before signing the agreement, to secure the financing, establishing the precise market and forced liquidation value of the aircraft is strictly required.
Sale and Purchase (S&P) of aircraft: When acquiring a business jet or a commercial airliner, a potential buyer (or investor) urgently needs an objective financial picture to avoid overpaying for an asset that will soon require extremely expensive capital maintenance (such as an engine overhaul).
Issuance of insurance policies and damage assessment: Aviation insurance (Hull All Risks) requires the precise knowledge of the replacement value. In the tragic event of a plane crash or severe damage, independent experts calculate the exact volume of the inflicted damage or the residual salvage (scrap) value.
Financial reporting and statutory auditing (IFRS): Airlines are legally obligated to conduct annual revaluations of their fleet in accordance with international standards. Establishing the fair value is critically necessary to obtain a clean auditor's report.
Lease Return Conditions: When an airline returns a leased aircraft to the lessor, a rigorous financial and technical valuation takes place to determine whether the asset meets the strict return conditions and exactly how much monetary compensation is due for maintenance deviations.

Georgian Legal Framework

In Georgia, the valuation of aircraft and all related legal transactions are governed by an extremely strict national and international legislative framework. First and foremost, the valuation methodology relies heavily on the International Valuation Standards (IVS), which dictate specific, rigorous approaches for aviation assets. On a national level, the fundamental document is the Air Code of Georgia, which regulates civil aviation activities, aircraft registration, flight safety, and the certification of airlines. According to the Code, the legal registration of aircraft rights and aviation mortgages is mandatory, which directly ties into the Civil Code of Georgia. When an aircraft is encumbered with a mortgage or pledge to secure banking obligations, determining its accurate market value constitutes a baseline legal requirement for registering these rights with the Georgian Civil Aviation Agency (GCAA). Furthermore, for taxation operations, the Tax Code of Georgia applies, defining the strict amortization rates for transport and aviation equipment. For corporate reporting, the Law on Accounting, Reporting and Auditing is of paramount importance, obliging airlines to flawlessly prepare their financial statements under IFRS standards. This law explicitly requires the confirmation of the fair and objective value of the aviation fleet on the balance sheet by independent, unbiased experts. Appraisers must also rigorously consider the binding requirements of the International Civil Aviation Organization (ICAO) and the European Union Aviation Safety Agency (EASA), as any technical non-compliance directly and radically diminishes the aircraft's market value.

Step-by-Step Process

The valuation of an aircraft is conducted according to highly organized, specific stages. In the first stage, the assignment is identified and full legal agreement is reached with the client. During this phase, the exact purpose of the valuation (financing, insurance, sale) is clarified, and the most crucial technical documentation (Status Reports) is formally requested from the airline's engineering department. In the second stage, a detailed audit of the documentation is carried out. This includes the precise calculation of Maintenance Reserves, engine flight cycles, and scheduled C-Check or D-Check overhauls. Often, this stage also necessitates a physical Aircraft Survey inside a hangar. The third stage is global market research. The appraiser utilizes renowned aviation databases (such as Ascend, Cirium, IBA) to source current market prices and lease rates for aircraft of identical type and age. In the fourth stage, the complex financial calculation takes place. The base market (comparative) value is subjected to strict Maintenance Adjustments (added or deducted) to precisely reflect the current wear of the engines, landing gear, and airframe in relation to their Half-life and Full-life operational status. In the fifth and final stage, an extensive, internationally compliant official expert report is prepared and securely delivered to the client for subsequent use in financial and legal institutions.

Why Use Legal.ge

Aircraft valuation is a highly specialized, elite, and high-risk field where the expert's international qualifications and profound knowledge of the aviation industry are of decisive importance. Legal.ge is the leading platform in Georgia that provides direct access to highly qualified, certified aviation expert-appraisers who possess practical, hands-on experience in valuing multi-million-dollar aviation assets. The official reports prepared by the specialists registered on our platform are unconditionally recognized by Georgian and foreign commercial banks, civil aviation agencies, major auditing firms, and international insurance syndicates. Selecting an expert through Legal.ge gives you a solid guarantee that the exceptionally complex process of aviation valuation will be conducted swiftly, with absolute transparency, and in the strictest adherence to International Valuation Standards (IVS). Find a reliable and professional aviation expert on Legal.ge and obtain an accurate, financially substantiated, and legally flawless valuation report for your aircraft.

Aircraft Valuation

What This Service Covers

Detailed audit of technical records (Logbooks): An in-depth analysis of flight hours, completed cycles, repair history, and scheduled maintenance records. This is the most critical part of an aviation valuation, because without proper documentation, an aircraft immediately loses the vast majority of its value.
Verification of compliance with Airworthiness Directives (AD/SB): The expert strictly verifies the extent to which mandatory modifications issued by the manufacturer and civil aviation authorities have been executed and properly documented.
Isolated valuation of engines and components: Frequently, aviation engines, landing gear, and Auxiliary Power Units (APU) possess operational lifespans and market values completely independent from the airframe. The service includes the individual calculation of each multi-million-dollar component using Half-life and Full-life methodological approaches.
Physical inspection: Direct visual examination of the aircraft in a hangar or on the apron. The expert evaluates the condition of the fuselage, avionics systems (radio-navigation), interior wear and tear, and the specific cabin configuration.
Global aviation market research: Since aviation is a truly global industry, the expert analyzes international sales, lease rates, and transactions of identical aircraft using specialized global aviation databases.
Formation of the final report: Generating an official expert report in English or a bilingual format that strictly complies with International Valuation Standards (IVS) and is fully acceptable to both local and foreign financial institutions.

Common Real-World Scenarios

Leasing and aviation financing: The vast majority of airlines acquire aircraft from international leasing companies or banking syndicates. Before signing the agreement, to secure the financing, establishing the precise market and forced liquidation value of the aircraft is strictly required.
Sale and Purchase (S&P) of aircraft: When acquiring a business jet or a commercial airliner, a potential buyer (or investor) urgently needs an objective financial picture to avoid overpaying for an asset that will soon require extremely expensive capital maintenance (such as an engine overhaul).
Issuance of insurance policies and damage assessment: Aviation insurance (Hull All Risks) requires the precise knowledge of the replacement value. In the tragic event of a plane crash or severe damage, independent experts calculate the exact volume of the inflicted damage or the residual salvage (scrap) value.
Financial reporting and statutory auditing (IFRS): Airlines are legally obligated to conduct annual revaluations of their fleet in accordance with international standards. Establishing the fair value is critically necessary to obtain a clean auditor's report.
Lease Return Conditions: When an airline returns a leased aircraft to the lessor, a rigorous financial and technical valuation takes place to determine whether the asset meets the strict return conditions and exactly how much monetary compensation is due for maintenance deviations.