Increasing private jet ownership in the country has presented members of the Nigerian Institution of Estate Surveyors and Valuers an opportunity to show their skills in the complex area of aircraft valuation.
To hone the skills of members, the Faculty of Plant and Machinery Valuation, NIESV, brought an expert in international aviation valuation, Mr. Leslie H. Miles, to Lagos on Wednesday and Thursday to teach them the current trends in that line of business.
Miles is a senior member of the American Society of Appraisers and is accredited as a plant, machinery and equipment appraiser with specialty in appraisal review and management with aircraft appraisal as an additional technical valuation discipline.
In a presentation at the ‘International Seminar on Plant and Machinery Valuation: Focus on aircraft, oil and gas installations,’ Miles said there were enormous opportunities for NIESV members to handle the valuation of aircraft assets in a standardized manner since aviation was a global business.
To do this successfully, however, he said they must understand the rudiments of the aircraft like type, year of manufacture, engine type, manufacturer, capacity and operations.
Using himself as an example, Miles said apart from being a certified appraiser or valuer, he was a trained pilot with many years’ experience of flying.
He urged members of the institution to update their knowledge and adopt a standardized method of carrying out aircraft valuation in line with global best practices.
The Chairman of the faculty, Mr. Paul Osaji, said following the crash of a Dana Air’s plane in Lagos on June 3, 2012, a lot of focus had been on doing things properly in the aviation sector through acquisition of new aircraft.
He said members of the institution needed to know the value of an aircraft and other details like the cost of insurance before they could successfully ascribe a value to it.
Osaji said, “In recent times, more Nigerians have been acquiring private aircraft. We have about 200 of such private jets in the country at the moment with over N1.3trillion invested in their acquisition.
“We need to guide the investor on the value of the aircraft. They need to know how much to pay for one, how much to insure it for and the cost at which they can sell if the need arises. Loss adjusters need to know the value of the aircraft and the insurance before they can pay claims in cases of accidents.”
The same knowledge, he said, would apply to the valuation of commercial passenger and cargo planes.
Osaji said by their training, NIESV members were the only licensed set of professionals in the country allowed to put value on different items, whether landed property or plants and machinery.
To do this, he said they did not have to be pilots or aeronautical engineers, but only needed to add the knowledge of how the aircraft operated to their body of knowledge on general valuation.
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