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Distressed Sale Discounting Edges Upwards

May 21, 2012

Levels of distressed sale discounting have been steadily climbing since the start of the Great Recession in 2008. The level of discounting applies to current market not base values. The level of discounting needed to be applied to a base value would likely be higher as base values are seemingly above market values, whether the market is strong or weak. Generally, the older the aircraft the greater the level of discounting needed to achieve a sale largely because of greater competition and lesser interest. Inevitably, as aircraft age the level of distressed sale discounting starts to equate to the parting out value.

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