It solve the issue of defining the right price of aircraft, A320-200 that manufactured in 2006, by using available market data.

1. Yemenia Focus (Issue No. 5)
AIRCRAFT PRICE EVALUATION
AIRBUS A320-200
BY:
MOHAMMED SALEM AWAD
CONSULTANT
Aircraft Price Evaluation is always govern by Aircraft
performance and its condition at the time of sales. There
are many sources/companies that work to facilitate and
explore the right price at the current and future time, one of
those companies is AVITAS, Inc.
https://www.avitas.com/valuation/online-services/
Today the task is different; we have to answer the question,
for top management.
"What is the current market value (i.e at Jan 2019) for
A320-200 Aircraft that manufactured in 2006."
Actually, we can approach AVITAS directly, or we can do it in our own way, using
the tools and the available published information
from AVITAS.
There are two information sources.
1- First Source: Data published by Air
Transport World Magazine – concerning
A320-200 Aircraft market value that
manufactured in 2005, which always
published at Trend pages. We have three
issues.
2- Second Source: Using the Data that demonstrated in the Marketing Demo
(Video) of AVITAS, i.e Data of A320-200 aircraft that manufactured in 2006
for Air berlin. At the year of publishing the Demo (2017).
Analysis:
1- Developing Price – Age (time) Curve:
Usually a straight line define by two points while the curve define by
minimum three points, so by refereeing to Aircraft value for A320-200 that
aircraft manufactured at 2005 and published at Air transport world magazine
(please refer to appendix). As shown in the graph (dotted line) started from
2014 to 2034. Then using xls tools to select the right curve that represent the

2. 2 2
data, also to define its formula and its goodness of fit (R- Square). At this
stage, we define A320-200 price curve for Aircraft manufactured at 2005.
2- A320-200 that manufactured 2006. Published
Data 2017.
According to the Demo of AVITAS ( 2017 ) they
demonstrated Air berlin Fleet of 35 Aircraft- out
of that, three aircraft are manufactured in 2006, as
shown in the table, their market price is shown at year 2017.
So position their values on the graphs. At year of 2017.
3- Defining the current market price for A320-200 that manufactured at
2006.
Since we are in Jan 2019,
So first displace the
graph of Aircraft
that manufactured
2005, and force the
model to pass
through Jan-06 and
Nov-06 (Yellow
colors), and develop
the corresponding
graphs for aircraft
that manufactured in
2006 at 2017 (time
of the analysis).
Next – draw lines from year 2019 upwards that hits these two curves of
extreme boundaries for 2006 – aircraft-manufactured. As shown in graphs.
Results:
According to the analysis and depends on Aircraft Condition at Jan 2019, for
A320-200 that manufactured -2006:
The upper limits price = 17.45 Millions -USD
The lower limits price = 16.25 Millions - USD

3. 3 3
Appendix :