Do you include Buyer Furnished Equipment (BFE) in your Online Valuations? If not, why?

We assume a typical amount of BFE in our valuations. We do not recommend adjusting for any
additional BFE other than certain avionics items for which we have an adjuster. We do not include
special / additional BFE in our valuations for several reasons:

• Most BFE gets written-down quickly (one to two years);
• A lot of the BFE – particularly in the premium cabins – is “signature” and thus not normally
tradable from operator A to B.
• In our valuation assumptions, we assume the aircraft to be a “typical airline example”, which
includes a level of BFE that would be considered average for that sector of the market.
• Ascend by Cirium always provides value opinions for used aircraft, as stated in our definitions.
This is where the discrepancy between what is paid for a new aircraft by the original customer
and what it trades for on the used market – even if “almost new” – becomes most apparent:
the amount that was initially invested in the BFE may be very similar to what is needed for the
reconfiguration to transition to the next operator.
• If the aircraft you are valuing has any additional avionics that are BFE and listed on our spec
options list, you can select them online, otherwise, we consider other BFE items not to add
value to the aircraft.
• We would strongly advise against adding airline BFE on top of our value when financing, as
this BFE may not translate to value when the aircraft is sold to the next operator