Top 4 things to know before getting your aircraft appraised

Shedding light on aircraft appraisers

Appraiser credentials are, by far, the most common source of confusion in our industry. Here are the facts you need to know before approaching an “expert” for an appraisal:

1. There are ZERO consumer protections.

Most consumers are familiar with the appraisers from real property transactions, where there are a slew of regulatory consumer protections in place. Outside of real property appraisers, anyone can call themselves an appraiser of something - aircraft, art, surfboards, anything. This creates an environment for confusion, because it forces the end-user of appraisal services to determine the underlying credibility of the appraiser. Fortunately, there are organizations (which I will describe later) that accredit appraisers to perform aircraft appraisals. If you are not using an accredited appraiser you are at high risk of receiving a unreliable report.

2. Dealmakers May Not Be Impartial

Any number of aircraft dealers/brokers will provide you with a written appraisal. These parties are not inherently impartial since they are vying to be a member of the transaction and are concerned with either selling you on a number than makes you happy, or one that gets you to engage them as a broker. Accredited appraisers are held to ethical standards and must disclose any previous, current or prospective interest in the property. Maintaining impartiality is one of the key ethical requirements of an appraiser and an added layer of security with your valuation.

3. Someone Must Enforce Ethics & Best Practices

Appraisers who are accredited by a professional organization must uphold the standards of that organization or they will lose their credential. This is important. Non-accredited “appraisers” are not required to conform with any regulations or practices, nor is there a channel to report and remove unethical appraisers. Flight Level’s appraisers are both accredited with the ASA which strictly enforces compliance with the USPAP development/reporting guidelines, society ethics/practices and requires a minimum of 24 hours of continuing education in the appraiser’s field each year.

4. There are three organizations that accredit appraisers

While there are other organizations that claim to offer credentials the 3 that are professionally recognized are the: American Society of Appraisers (ASA), International Society of Transport Aircraft Trading (ISTAT), and the newly formed (2018) Professional Aircraft Appraisal Organization (PAAO). There are not any other organizations in the United States that provide education, testing, and credentials to aircraft appraisers. We will be comparing these organizations further in our next article.

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Next time you or your lender are in need of an appraisal, seek out an appraiser who is impartial, conforms to a standard for ethical conduct and is accredited by an appraisal organization. Of course, if you have further questions or concerns about appraisals, Flight Level’s team of ASA accredited appraisers is here to help.

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Author:

Cameron Tipton, ASA

co-founder/accredited senior appraiser

Flight level partners

The 6 Strangest Business Aircraft Ever Built

Beechcraft Starship

The Beechcraft Starship was introduced to the market in 1983 and was destined to be an innovator, featuring the first glass cockpit in any business aircraft and an exceptionally “unique” design. There are 5 remaining Starships in the US that still hold FAA registration.

Piaggio Avanti

The Piaggio Avanti was introduced in 1990 with a similar design to the Beechcraft Starship. The Italian-built aircraft bears the nickname, “Catfish of the skies” because of its unique canard design. The Avanti has made a name for itself by offering jet speeds and superior onboard comfort at the operating cost of a turboprop. The Avanti is still alive-and-well, it is in its third design iteration dubbed “EVO” and can be picked up for $7.5 million USD new.

Rutan Boomerang

The Rutan Boomerang was built to reduce the adverse effects associated with losing one of the two engines on a twin-engine aircraft. The design results are interesting to say the least. The design never left the FAA certification process and only 1 aircraft was ever built.

AdamJet A700

Adam Aircraft Industries (AAI) first flew the A700 twin-jet in 2003 as a counterpart to the A500 twin-engine piston developed around the same time. Ultimately, the development of both aircraft met their ultimate fate after the economic crisis of 2008 leading to the bankruptcy of Adam Aircraft.

Edgley Optica

The first flight of the Edgley Optica was in 1979 and it was designed as a low-cost alternative to the helicopter for observational work. The UK built aircraft is powered by a lycoming flat 6 cylinder that drives a ducted fan behind the cockpit. 22 aircraft were delivered by Edgley and there is now hope that production will begin again in 2019.

Gee Bee R-2 Super Sportster 

The Gee Bee is by far the oldest of the bunch (and not exactly a business aircraft), it was produced in 1932 as a racing aircraft identical to the original Gee Bee R-1. The aircraft had a reputation for being incredibly difficult to control and was inherently dangerous. The R-2 and R-1 were pieced together after a crash of the R-1. The aircraft was eventually sold to a private owner who added larger fuel tanks making the aircraft impossible to control, he crashed after takeoff and was killed - it was never rebuilt.

Game changer? A look at the Diamond DA-62.

Has Diamond Built a Better Mousetrap?

Multi-engine piston aircraft have become a relic of the past. Simply put, the need for two engines to enhance safety margins and increase performance is generally outweighed by the (significant) increase in fuel-burn and maintenance costs. Modern piston engines are just more reliable than they were in the 70’s through the 90’s when multi-engines became popular.

However, for the crack-team over at Diamond Aircraft, these facts didn’t get in the way of launching the DA-62 in 2015. Diamond believes that with the right combination of efficiency, price, and load capacity the light-piston-twin will live again.

Diamond DA-62

Their Secret Smells Like Kerosene

For those familiar with aircraft specifications (read: avgeek, like me!), you may find yourself second-guessing the fuel burn Diamond has published for their high-speed cruise setting: 17.1 gallons per hour COMBINED. As a reference point, both the Piper Seneca and Beechcraft Baron consume more than double that with weaker overall performance. How does Diamond do it? Diesel. The DA-62 is powered by two Austro AE330 diesel engines that were modified designs from Mercedes-Benz automotive engines. The end result is an engine design that is more modern, efficient, and simpler to operate than any of its piston competition.

A unique byproduct of the diesel engine is the much quieter operation compared to a traditional piston. This may not sound like much, but the constant abuse from a piston engine is actually a major factor in pilot and passenger fatigue. To mitigate the vibration even further the engines are mounted on an oil-based suspension system. The result is an engine so smooth and quiet I genuinely had to look out the window to see if the motor had actually started; for all the pilot readers - you will have a strong appreciation for the FADEC controlled startup procedure which entails a couple switches and a button. I could talk engines all day, but let’s talk about the important part - interior.

Function Meets Fashion - DA-62 Interior

General aviation is all about trade-offs. You can’t have long range with heavy payload, or speed with fuel efficiency. So with all this function is it too much to ask to also have some fashion and comfort? Apparently not, the DA-62 is built to be a comfortable hauler. Generally, I would equate the interior to that of a luxury SUV, let’s call it a European luxury SUV - since this is an Austrian airplane, after all. The cabin is divided into 3 rows. The most forward row houses the pilot and co-pilot seats that are accessed via a dedicated door. The flight deck is appointed in a minimalist fashion with the venerable G1000NXi taking up most of the real estate. The middle row is the main attraction. It is arranged as a three abreast bench that is about the same width as a Suburban, so while three average adults would sit comfortably it may feel crowded on an all day journey. Legroom and headroom feel adequate for all occupants. The third row has about the same functionality as a midsize SUV, it is really for built for a couple kids or small adults, certainly not ideal for the average guy, but it would work in a pinch (or perfect for easy-going friends). So all-in we’re counting 7 seats on the DA-62.

I earlier referenced the range vs. payload conundrum. The DA-62 is one of the most competitive payload carriers in its class. Full fuel tanks will keep a healthy 1,000 lbs of capacity for stuff and people. That lets you carry 5 NBAA’s standard adults at 200 lbs each over (a highly respectable) 1,000 miles. Sacrifice some of that range and you can fill up the DA-62 to the brim.

DA-62 Interior

A Twin Finally Worth Considering

The Diamond DA-62 is an enigma in a world of fuel-hungry poor performing light-twins. Frankly, it is difficult to find many faults in the design or construction. The Austro engines are a huge win, with fuel economy rivaling high performance singles, the interior was well crafted and presents an option for a true 7 passenger hauler. And the bow on top? This marvel of engineering is built by Diamond - a leader in safety and innovation.

Now, there is one shock that many of you know is coming, PRICE. As of this posting, an average build for the DA-62 lands you just north of $1.2 million (USD). That is definitely seems like a big ask, BUT let’s compare it against comparable equipment. A fully loaded SR22 Turbo is just south of $1 million, Piper Seneca is just about $1 million and the Beechcraft Baron is around $1.4. A major factor to consider in pricing is direct (per hour) operating cost. The Diamond sits around $200 per hour - this price includes fuel burn, average maintenance, and engine overhaul reserves. At $200 it is more expensive than the single engine Cirrus but substantially less than the Seneca or Baron. I’ve heard the argument that at $1.2 million the DA-62 competes closer to turboprops like the Meridian or TBM. I could not disagree more strongly. While in the same initial capital territory the operating costs of a Meridian would be more than double and annual costs will be higher.

All in, I’m very impressed by the DA-62. The combination of speed, load capacity, and comfort are compelling. However, I think the argument for the DA-62 is greater than just a handful of features, I believe it raises an age old debate - single vs. multi engine? I could (and probably will) write convincing arguments for either side, but it is a huge step forward for multi-engine market to finally have an airplane worth talking about. Looking for a 7 passenger hauler? The DA-62 should be at the top of your list.

Diamond DA-62 Austro Engine

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Author:

Cameron Tipton, ASA

Co-Founder/Director of Brokerage

Flight Level Partners