Damaged Goods: A Reflection

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Damaged Goods: A Reflection

In the unfortunate event of damage to your aircraft, hull insurance should pay for repairs, but unless you have additional Diminution of Value protection, it will not cover the loss created by documented damage history.

I was personally involved in determining a Diminution of Value claim on a GIV-SP that experienced a forward bulkhead incursion during a “D” Check. A technician did a gear retraction test while the aircraft was on jacks and the nose gear was partly disassembled. A nose gear component was driven into the flight deck causing additional damage to the Avionics.

Even though the aircraft was completely repaired in accordance with Gulfstream Engineering and recertified by Gulfstream, the Market Value of the aircraft dropped by $1,245,000. Jeff Wieand, a Business Jet Traveler columnist, reports on what you need to know. Read the article.

By |2017-01-23T10:56:58+00:00April 27th, 2015|insurance, Laws and Finance, repairs, Taxes|0 Comments

About the Author:

Bob is co-founder and Managing Director of AvRisk. He has been engaged in aviation finance and consulting for more than 30 years. In addition to his own consulting practice, Bob was Vice President of Business Development for Jet Support Services Inc (JSSI) and held Director of Finance or Portfolio Management positions with Boeing Capital Corporation, Bombardier Aerospace, GMAC, CMI Corporation, Michigan National Leasing Corporation and the National Bank of Detroit. Bob earned a BS Degree in Accountancy at Western Michigan University and a MBA in Finance from the University of Detroit. He has been a Guest Lecturer at Embry-Riddle Aeronautical University and Michigan State University and an Instructor of Corporate Finance for Davenport University.

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