When is it better to part-out an aircraft than sell it?

Parting out an aircraft (dismantling it for the sale of individual components) can be a more profitable or strategic option than selling it as a whole in certain situations. If the aircraft is old, has high total time in service, or requires extensive and costly repairs, selling it as a whole may not yield a reasonable sale price. In such cases, parting out the aircraft allows you to salvage valuable components and systems, which can have a higher market value than the aircraft as a whole. Certain components of the aircraft, such as engines, avionics, landing gear, or specific airframe parts, may be in high demand in the used aircraft parts market. If the value of these components significantly exceeds the aircraft’s overall market value, parting out can maximize your return on investment. Evaluate the current demand for used aircraft parts in the specific market. High demand for parts, especially for popular aircraft models, can make parting out a lucrative option. Parting out an aircraft can be a profitable endeavour, but it often requires careful inventory management, storage, and sales efforts. If you have the resources and expertise to efficiently manage part sales, it can be a more profitable choice. If the aircraft has extensive damage or is no longer airworthy, it may not be suitable for resale as a whole. Parting out allows you to recover value from the aircraft’s components before it is scrapped. In some cases, parting out an aircraft can be part of a broader business strategy. For example, aircraft dismantlers and salvage companies specialize in acquiring retired or damaged aircraft to part them out and resell components. If you’re in this business, parting out aircraft is your primary focus. In some regions, regulations and environmental standards govern aircraft disposal. Parting out an aircraft allows for recycling and responsible disposal of components while complying with environmental regulations. Market conditions, including the supply and demand for specific aircraft components, can fluctuate over time. It’s important to assess the current market to determine if parting out makes financial sense. If you continue to own an aircraft that is no longer in operation, you may incur storage and maintenance costs. Parting out the aircraft can help reduce these ongoing expenses. Before deciding to part out an aircraft, it’s advisable to consult with aviation professionals, appraisers, or specialists who can provide insights into the specific aircraft model, the used aircraft parts market, and the potential return on investment. Careful planning and accurate valuation are essential to ensure a successful and profitable part-out operation.