Current Market Value (CMV)

What is Current Market Value?

Current Market Value (CMV) is an appraiser's opinion of the most likely trading price an aircraft would achieve under market conditions at a given point in time, as defined by the International Society of Transport Aircraft Trading (ISTAT).

CMV assumes the following conditions:

• The aircraft is valued for its highest and best use
• Both parties are willing, able, prudent, and knowledgeable
• Neither party is under unusual pressure to complete the transaction promptly
• The transaction takes place in an open, unrestricted market on an arm's length basis
• Payment is made in cash or equivalent consideration
• Adequate time is given for effective market exposure to prospective buyers

How is Current Market Value calculated?

ch-aviation provides Current Market Value data in partnership with Collateral Verifications (CV), a specialist aircraft valuation provider. Their methodology draws on two layers of analysis:

• Primary source — reported market values — CV collects all known reported market values from a wide range of aviation industry sources, as well as from its own proprietary and confidential transaction database.
• Secondary analysis — market influencing factors— CV also evaluates a broad set of variables that affect an aircraft's market value, including:
  • Age and condition of the aircraft
  • Configuration and fleet composition
  • Number of similar aircraft available on the market or in storage
  • Operating economics and new aircraft pricing
  • The overall state of the aviation industry

All data is entered into CV's proprietary transaction database and analysed to produce a Current Market Value based on a single sale transaction, using the assumptions outlined in each aircraft valuation report at the time specified.

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