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Asset Quality Rating

5.176

Rating: Very Good

-2.500 10.000
 
 
 

Maintenance Rating

5.162

Rating: Very Good

-5.000 10.000

Financial Rating

5.191

Rating: Very Good

0.000 10.000

Maintenance Equity

$7,327,731

Rating: Very Good

$0 Max Maintenance Equity
 

A simple to understand, industry standard for evaluating & grading aircraft with respect to their Optimal Maintenance Condition, such that an aircraft's overall financial performance could be derived, compared and, if appropriate, improved.

The aircraft Maintenance Rating , or Asset Technical Condition Score ("ATC Score"), utilizes the Asset Grading System Process (Patent Pending) to objectively evaluate and grade an aircraft's maintenance status, on a standardized scale, relative to its Optimal Maintenance Condition (the aircraft's maintenance condition on the day it came off the production line), utilizing the aircraft's (standard/typical) Scheduled Maintenance Program. The Maintenance Rating scale, and what the figures represent, is detailed below:
-5.000 - 2.000 3.000 4.000 - 6.000 7.000 8.000 - 10.000
Poor
Asset
Quality
Below average asset quality due to upcoming scheduled maintenance Most aircraft will score within this range, representing good asset quality Very good asset quality (usually associated with recent production aircraft) Exceptional asset quality (typical of new, or nearly new production aircraft)
To derive the Maintenance Rating for any aircraft make/model, several variables, including the Scheduled Maintenance Program established by the aircraft's manufacturer and/or other regulatory authority (e.g., the Federal Aviation Administration) have been compiled, and a frequency (grading standard) has been established for specifically identified scheduled maintenance events (the "ATC Maintenance Program"). For items that do not have specific service life (replacement) limitations, a service life figure has been established based on that component's projected average failure rate. Once a specific aircraft's maintenance history has been compiled, it is compared against the ATC Maintenance Program to determine the aircraft's ATC Score – its Maintenance Rating.
The aircraft Financial Rating , or Asset Technical Financial Condition Score ("ATFC Score"), evaluates and grades an aircraft's financial condition relative to its Optimal Maintenance Condition, meaning the ATFC Score is weighted by the estimated cost to complete each maintenance event. The Financial Rating scale is detailed below:
0.000 3.000 4.000 - 6.000 7.000 10.000
All scheduled maintenance
events due
Aircraft burdened by upcoming, high cost, scheduled maintenance events Most aircraft will score within this maintenance status cost range Maintenance facing only relatively low-cost maintenance events Newly
Manufactured
Aircraft

To derive the Financial Rating for any aircraft make/model, the average cost to complete each maintenance event comprising the aircraft's maintenance program (ATC Maintenance Program) is determined. Having compiled the aircraft's maintenance history, the time (calendar, flight hours or cycles) accumulated toward each individual scheduled maintenance event is used to determine the aircraft's ATFC Score – its Financial Rating.

For example, if an aircraft had only two maintenance components, and if the Remaining Useful Life for one was 25% while the Remaining Useful Life for the second was 75%, their combined ATC Score would be 5.000. However, if the first of these components has an overhaul cost of $10,000, while the second has an overhaul cost of $1,000, their combined Financial Rating would be 2.955 (see below).
Remaining Useful Life Overhaul Cost Remaining Financial Value
Component #1 25% $10,000 $2,500
Component #2 75% $1,000 $750
TOTAL: $11,000 $3,250
Financial Rating (ATFC Score) calculation ($3,250 / $11,000) X Perfect Score (10.000)= 2.955
Maintenance Equity represents the difference between the aircraft's maximum scheduled maintenance value (achieved the day the aircraft came off the production line), LESS the aircraft's Asset Technical Financial Exposure Value ("ATFE value") – the maintenance value consumed through utilization (due to flight hours, landings, or calendar time).

To derive an aircraft's ATFE Value, the estimated cost for completing each event comprising the ATC Maintenance Program (see Maintenance Rating) is established. Having compiled an aircraft's maintenance history, the time (flight hours, landings/cycles, and/or calendar period) accumulated toward each individual scheduled maintenance event is used to compute the dollar liability accrued toward that event, with the ATFE Value representing the total accrued liability toward future maintenance events.

The Maintenance Equity scale is shown below:
$0 Available Maintenance Equity Max Maintenance Equity For Aircraft
No Maintenance Equity
available – aircraft is
un-airworthy
Typical aircraft Maintenance Equity range Newly Manufactured Aircraft or HCMP Adjusted Equity value equivalent
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