Book value of aircraft

Hi guys,

I just got a good deal on a 2.6 year B737-700 for $6,972,726. But I am surprised to see that its book value once the bid end remained at the same price in my asset management screen.

I guess that price will increase in the coming days. If so, do you know how long it is going to take until that aircraft get a realistic market value?

Thank you very much.

It will not increase.

Ok thanks,

So it means that if someone decide to sell a brand new airplane at a cheap price, it will remains cheap for ever?

yes

Hi guys,

I just got a good deal on a 2.6 year B737-700 for $6,972,726. But I am surprised to see that its book value once the bid end remained at the same price in my asset management screen.

I guess that price will increase in the coming days. If so, do you know how long it is going to take until that aircraft get a realistic market value?

Thank you very much.

Ok thanks,

So it means that if someone decide to sell a brand new airplane at a cheap price, it will remains cheap for ever?

In an auction system, the price you got it for is the market value.

You find it at that price in your assets then (book value).

Once you sell it you’ll either make a book-loss (sales price < book value) a book-profit (purchase price > sales price > book value ) or an actual profit (sales price > purchase price)

You need to be aware that the market system in AS isn’t really working for several reasons (the one hour bidding is the most important here)

When you got the aircraft for 6m, this isn’t essentially its true market value, but simply luck on your side as likely nobody else was there to place a bit.

If there’d be a longer bidding period, I’d estimate market values (sales price) to be at maybe 20-30m for this airframe.