What Is Maintenance-Adjusted Value in Aircraft Leasing?
Maintenance-Adjusted Value defined for aviation professionals, with its operational or commercial use, document context and related terminology.
Technical Meaning and Practical Use
Maintenance-adjusted value starts from a benchmark aircraft value and then adjusts for the actual maintenance status of engines, airframe checks, landing gear, APU and life-limited parts.
Aviation Glossary
Term: Maintenance-Adjusted Value
Category: Aircraft Leasing & Finance
Where the Term Appears
Maintenance-Adjusted Value can appear in aircraft leases, loan agreements, security documents, appraisals, insurance provisions or closing deliverables depending on the transaction. The exact legal effect comes from the executed documents, governing law and the role of each party.
How It Affects the Transaction
The adjustment can materially change collateral value where an aircraft is close to expensive shop visits or heavy checks.
What to Review
Read the definition together with payment mechanics, default provisions, insurance, maintenance, return conditions, security and enforcement rights. A familiar label can have a different economic effect when the drafting or calculation method changes.
Related Aviation Topics
Related ACMI World coverage includes key terms in aircraft leasing contracts, business jet leasing, aircraft acquisition financing, cross-border jet lease terms and aircraft valuation and LTV.
The adjustment can materially change collateral value where an aircraft is close to expensive shop visits or heavy checks.
Maintenance-Adjusted Value FAQ
What does Maintenance-Adjusted Value mean in aviation?
Maintenance-adjusted value starts from a benchmark aircraft value and then adjusts for the actual maintenance status of engines, airframe checks, landing gear, APU and life-limited parts.
Why does Maintenance-Adjusted Value matter?
The adjustment can materially change collateral value where an aircraft is close to expensive shop visits or heavy checks.
Where would an aviation professional encounter Maintenance-Adjusted Value?
It is commonly encountered in aircraft leasing & finance documents, procedures, calculations or operating discussions where the underlying technical or commercial issue is relevant.
Does the term have the same meaning in every aircraft finance document?
No. Market terminology is useful shorthand, but the executed agreement controls. Defined terms, calculation methods, governing law and transaction structure can change the result.