Steve VarsanoFounder at The Jet Business

Factors that determine the price of a corporate jet.

Name: Factors that determine the price of a corporate jet.
Uploaded: 2024-08-17T20:09:53+00:00
Duration: 31 s
Channel: Steve Varsano
Description: In this brief segment, Steve Varsano outlines the primary determinants of a corporate jet’s market price. He explains that the aircraft’s age, total…

17 Aug 2024 · 1 min

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In this brief segment, Steve Varsano outlines the primary determinants of a corporate jet’s market price. He explains that the aircraft’s age, total flight hours, and number of cycles (landings) directly affect valuation. The overall condition and detailed maintenance history are also crucial, especially where the jet stands in its maintenance program—whether it is approaching a major, costly inspection or has just completed one, which can cause price fluctuations. Additionally, he highlights that jets whose engines are covered by an engine maintenance or insurance program command significantly higher prices than those without such coverage.

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The key factors that are affecting the price of a corporate jet are really the age, the number of hours on it, the number of cycles, landings on the airplane, the condition of it, the maintenance history, and where it sits along its maintenance program because it'd be coming due for a very big inspection that could be very expensive or it was just completed and that could drastically change the price of the airplane. And the other biggest thing is if the engines are on what they call an engine program, it's like an insurance policy for the engines. If the airplanes are on those policies, it's worth a lot more than if they're not.