Vol. 25, No. 2 | June 6, 2012 | Go to Charts

IN THIS ISSUE

Bluebook Perspectives: Thumps and Bumps in the Pre-Owned Market
Into the Blue: 12th Annual EBACE Convention Shines in Geneva
Ask Aircraft Bluebook: I have a run-out Lycoming IO-360 and the Bluebook says that the overhaul for this engine is...

[Download the full June 2012 Marketline Newsletter and All Charts.]

Ask Aircraft Bluebook:

I have a run-out Lycoming IO-360 and the Bluebook says that the overhaul for this engine is $25,000, but when I enter the 2,000 hour TBO amount for the engine time it only deducts $12,500. Why is it not a deduction of $25,000?

The Aircraft Bluebook prices piston aircraft with midlife engine(s). This means that the point of reference for adjustments is from mid-life, not from zero. If an engine has a 2,000 TBO limit, then the adjustment is based on the engine’s relationship from mid-life or 1,000 hours in this example. At mid-life the Bluebook has accounted for half of the engine’s value being used and half of it remaining, so if the engine time is now adjusted to be run-out, all that is left to deduct is the remaining half (which in this case would be $12,500). Conversely, a zero-time engine would get a $12,500 credit for the same reasons just explained.