Base Value (BV)

What is Base Value?

Base Value (BV) is an appraiser's opinion of the underlying economic value of an aircraft in an open, unrestricted, and stable market environment — one where supply and demand are reasonably balanced and the aircraft is being considered at its highest and best use.

A Base Value assumes an arm's length, cash transaction between willing, able, and knowledgeable parties acting prudently, free from duress, and with a reasonable period of time available for marketing. It is grounded in the historical trend of aircraft values and takes into account projections of future value trends.

How is Base Value calculated?

ch-aviation provides Base Value and Future Value data in partnership with Collateral Verifications, a specialist aircraft valuation provider. Their methodology works as follows:

• Transaction analysis — Collateral Verifications analyses transaction data from its proprietary database to establish the market price of an aircraft at a specific point in time.
• Depreciation modelling — Historical data is used to determine average depreciation rates, broken down by aircraft type, mission, and whether the aircraft is in or out of production.
• Valuation output — The resulting depreciation factors are applied across valuation models to produce the Base Value and Future Value figures you see on the ch-aviation platform.

If this article does not answer your question or resolve your issue, you can always submit a ticket and our Customer Support team will get back to you as soon as possible.