Jetrader - Winter 2014 - 31

The value of these industry events is a
two-way street, according to Bruce Nicoletti,
Boeing Capital's aircraft valuations analysis director and co-host of the company's
Appraisers' Forum.
"Boeing has been hosting this forum for
the past 15 years, providing the appraiser
community with access to company
authorities and the latest Boeing program
updates," Nicoletti said. "The appraisers'
role is extremely important to Boeing and
so it is critical to us that they have access
to our products and understand the value
these products offer. A key part of the
program is providing access to our executives to help appraisers in their efforts to
establish values for new and used aircraft
for financing or sale purposes."
As part of this year's session, the group
of about 50 participants took part in a
series of briefings and a tour of Boeing's
Renton, Washington, factory where the
company produces the 737 airplane.
Regardless of the format in which it is
delivered, Phil Seymour, president and chief
operating officer of IBA Group and head of
the ISTAT appraisers program, said: "For
an appraiser, information is the lifeblood.
Without data and the informed opinion that
goes with it, an appraiser cannot thrive."
Appraisers come from an increasingly
diverse range of industry backgrounds, and
business models vary across the community,
from sole traders providing a bespoke service to large firms offering aircraft appraisals as part of a wider range of services.
However, the key issues that face
appraisers are perennial ones, such as
diversity in values.
"This will never go away," Seymour said.
"We are often asked if it is reasonable that
there are differences of more than, say,
20 percent between appraisers assessing
the same aircraft. All we can do is continue
to provide our own methodologies to the
client and over time the client will decide
who to use. There is not necessarily a right
or wrong value."
ISTAT's appraisers program, which has
been in place since the origins of the organization, aims to provide ongoing education and resources for appraisers. The
program has a number of initiatives in work,
including development of reference material for the ISTAT website to help appraisers
preparing for the ISTAT examinations as

well as continuing education for certified
appraisers.
And while this is the first step towards
providing more formal web-based training
for appraisers, Seymour conceded, "We are
a couple of years away from that yet."
In the meantime, appraisers, such as
Les Weal from Oriel, continue to value briefing sessions and forums offered by manufacturers as a critical vehicle for information.
"These forums are of vital importance-
in fact, I would make attendance at OEMs'
events compulsory for those wishing to

hold ISTAT qualification," Weal said. And
while the mix of participants from appraisal
firms, ratings agencies and analysts provides diversity in the discussion, Weal provides event organizers with some food for
thought: "I like the broad cross-section
of communities that attend the briefings,
but I believe there would be real value
in holding breakout sessions that include
appraisers only."
Thanks to Boeing for supplying editorial content for this story

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