Understanding an aircraft's full history, especially any past damage, is a crucial step for both buyers and sellers. But what exactly qualifies as damage history, and how much does it truly affect an aircraft's value? We sat down with three experts from Duncan Aviation's Aircraft Sales & Acquisitions team to get their insights on this complex topic. Ann Pollard, Tim Barber, and Doug Roth, all experienced sales representatives, share their perspectives on defining damage, its frequency, and the critical importance of transparency and documentation in the resale process.
Damage history is a subjective concept often determined by the cause of the repair rather than its scope. A repair for typical wear and tear may be the same as one classified as damage. Incidents can range from minor hangar rash or contact with ground equipment, all the way up to runway excursions requiring structural repair or replacement.
Repairs made for normal wear and tear are generally not considered part of the damage history, which is why the classification can vary significantly.
Ann Pollard points out that wildlife strikes are another common cause of damage, which can affect an aircraft’s airframe, engine, and propellers and may even void existing warranties. Tim Barber adds that incidents such as wingtip damage, landing gear stress, and lightning strikes are also common. Regardless of the cause, damage history is never a positive factor, and buyers typically remain cautious, even when repairs are made with new parts.
While there are regulatory guidelines for major repairs, Doug Roth clarifies that not all major repairs stem from damage, and there are no universal written standards.
Damage history language is often found in the Letter Of Intent or an Aircraft Purchase Agreement. If no damage is disclosed, agreements often allow a buyer to walk away without penalty if material damage is discovered during the pre-purchase evaluation or records review. Pre-disclosed damage, however, is usually acknowledged and accepted in the purchase agreement. A Form 337 is often the most accepted document to confirm damage history, though sellers and brokers frequently characterize a repair as ‘parts off/parts on’ to lessen the perceived impact.
According to Doug, older aircraft are more likely to have some form of damage history, though major repairs following a runway excursion are less common. Ann says it’s not unusual for older, higher-time aircraft to have some level of damage history, and all damage, whether minor or major, should be reviewed during pre-purchase evaluation to ensure proper repairs were completed and that no hidden or unrepaired damage remains. Tim shares that in his experience searching for a pre-2015 Global 6000, about one-third of aircraft on the market had some form of damage history.
Minor Damage. The impact of damage on an aircraft’s value varies. Doug notes that minor repairs, like the replacement of parts attached with screws or bolts, usually have little to no effect on resale value, unless the damage stems from a runway excursion. Tim adds that buyers’ perceptions vary, with some seeing minor bird strikes or lightning strikes as negligible, while others do not.
Major Damage. Damage caused by runway excursions that requires major structural repair, reinforced with doublers, and results in recurring inspections, can have a substantial impact on value. The degree of impact is subjective.
Other examples include ground support equipment piercing a pressure vessel, significant corrosion repairs, or any event requiring major structural repair. Aircraft purchase agreements often define Material Corrosion in much the same way they define Material Damage, with recurring inspections and structural modifications as key thresholds.
Ann notes that market conditions play a significant role in determining the impact of damage history on an aircraft transaction. In a tight market with limited inventory, buyers may be more willing to accept aircraft with damage history. In markets with abundant inventory, aircraft without damage history are preferred, and buyers may use damage history to negotiate a price reduction.
For buyers and sellers, early disclosure of damage is crucial. Tim recalls that late revelations can "sour a deal," as they create frustration and may result in additional legal and travel costs. Buyers are more accepting of properly documented and openly disclosed repairs than damage discovered during the pre-purchase evaluation.
The quality of documentation is critical in mitigating the negative impact of damage history. Tim emphasizes the need to "keep absolutely everything," stating he once reviewed an aircraft with over 1,200 pages of documentation for a single incident. Documentation should include photos, invoices, and work orders. Doug adds that the reputation of the repair facility also matters, and including photos of unrepaired damage can help lessen concerns.
Ultimately, transparency and early disclosure are essential to building trust and protecting an aircraft's resale value. Material damage has a greater impact than minor repairs, and public records or media coverage can amplify negative perceptions. Well-documented, quality repairs from reputable facilities are key to preserving value.
To learn more about Duncan Aviation Aircraft Sales & Acquisitions services, please visit us at DuncanAviation.aero/AircraftSales or email us at AircraftSales@DuncanAviation.com.
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