Archives :: Aircraft Value News
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February 13, 2012
The values of the older A320s are facing pressures as newer examples continue to displace to such an extent that relatively young aircraft have more value when parted out. Intertrade has acquired an A320 for part out. Serial number 772 was built in 1998 and leased by GECAS to China Eastern through to 2010. The aircraft was operated by Armavia for eighteen months on a lease from CIT. The aircraft was...February 13, 2012
While the age profile of the 70 seaters is increasingly such that lease rentals are declining due to age, the demand for the larger regional jets is such that lease rentals are able to remain static. The rentals of the younger larger regional jets are steady and even increasing as a result of increased demand from a variety of sources. The larger regional jets have proved themselves to be more than viable...February 13, 2012
Both Airbus and Boeing are experiencing high profile inspections on their respective A380 and B787 aircraft which appear to have resulted from manufacturing issues but neither is of sufficient magnitude to affect perceptions of values. Designing aircraft is a complex task and even with the latest computer modeling the use of new materials and technologies inevitably results in some issues appearing early...February 13, 2012
The difficulties suffered by such airlines as Malev, Spanair and Kingfisher operating a largely leased fleet have the potential to contribute to a further weakening of lease rentals as airlines continue to experience the effects of long term economic weakness. Aircraft leased by Malev were increasingly being impounded for various reasons and the airline has finally ceased operations after nearly 66 years...February 13, 2012
The demand for airfreight remains in the doldrums with IATA data for 2011 indicating a slight fall while capacity continued to increase. The freight load factor remained significantly below 50 percent indicating that demand has some way to go in order to improve the yields of operators. The economy in the U.S. seems to be improving and this may stimulate additional traffic. However, a percentage of the...February 13, 2012
The installation of winglets and sharklets, which provide considerable fuel savings and enhanced performance, are becoming used as the baseline for values with non equipped aircraft potentially experiencing a discount in the coming years. The first new build A320 to be fitted with sharklets will be joining the test program in May this year. To date MSN 001 has been used for testing and results have either...February 13, 2012
The impetus for larger aircraft may have passed for the moment but the demand for the A321 is such that values are remaining stable though placing the aircraft via a lease is less easy than for the A320. After a sluggish start and an extended gestation period for a basic stretch, orders for the A321 continued to mount, perhaps at the expense of the B757. In the first ten years since launch in late 1989...February 13, 2012
The B767-300ER continues to be at the top of the leader board in terms of the differential between values and list prices for new aircraft and the order for three from Air Astana will not likely alter the disparity. Air Astana has ordered three B767-300ERs for delivery between 2013 and 2014. The aircraft will be used to replace two existing leased -300ERs and will eventually act as replacements for leased...January 30, 2012
A320neo List Prices Jump More Than 6 Percent The Airbus list prices for 2012 have again exhibited a significant increase, averaging 4.6 percent, inflated by the rise in A320neo family pricing. The above table indicates Airbus list prices between 2008 and 2012 together with the estimated new value as quoted by The Aircraft Value Analysis Company (www.aircraftvalues.net). The A320neo family values reflect a...January 30, 2012
The values of the B737-400 have continued to deteriorate in recent years as the type is withdrawn from service by mainline carriers in favor of such aircraft as the A320 and B737-800. Over the period 2004-2007 rentals of the B737-400 had been improving but since then have experienced significant declines. However, even though the -400 lacks the payload/range performance of the A319/A320 and...January 30, 2012
After experiencing a period of heightened enthusiasm from operators, resulting in a recovery in values and lease rentals, the realities associated with an advancing product life cycle are having a detrimental effect on the same values and lease rentals. In the run up to the peak of the market in the third quarter of 2007 lease rentals of the B767-300ER had enjoyed a significant improvement over the lows...January 30, 2012
The values of the B747-400 are continuing to decline in the face of weaker international demand and the significant number of deliveries of new aircraft. While the B747-400 continues to be used on a great many international routes, operators are increasingly finding that the type no longer meets its needs. The interiors of the B747-400 may still offer considerable space but operators are finding that the...January 30, 2012
The Eurozone “crisis” and the need for greater capital adequacy by financial institutions has the potential to not only limit the amount of financing available for new aircraft but also place downward pressure on values. As a consequence of the recession starting 2008, the number of financial institutions able and willing to finance aircraft quickly contracted. The modest recovery in the financial...January 30, 2012
The recent recovery in lease rentals from the depths of the Great Recession seems to have passed a peak as lease rentals on the mainstream narrowbodies continue to edge down slightly. The reason for lower rentals stems from the reconnection of the aviation industry to the wider economic malaise. In the first nine months of 2011, the relative buoyancy of the airline industry in terms of new orders...January 30, 2012
The widebody market is facing more uncertainty due to the concern over whether the high yielding passenger will continue to fly with such frequency. While the economy passenger may pay the fuel and flight crew salaries for the long haul operator, it is the business class passenger who pays for the financing of the aircraft and the profit. Flying just economy passengers usually results in a loss. While the...January 16, 2012
Placing a value on an aircraft suggests that the unit has attraction to other entities than the current owner or operator. Unfortunately the older aircraft are generally held in high regard only by their existing operators and are therefore not suitable for asset based financing. Seeking to sell the aircraft for cash was already proving to be more difficult and the credit crunch has only exaggerated the...January 16, 2012
The use of twin engined widebodies on longer sectors has traditionally been hampered the necessary restrictions imposed by the time required to divert to an airfield in the event of an engine failure but the introduction of a new 330 minute limit for the B777-300ER means that the type can fly virtually unrestricted. The limit for ETOPs equipped aircraft was set at 180 minutes for many years but this was...January 16, 2012
More than ever the cost of the interior is representing a greater proportion of the initial purchase price and causing problems for the remarketing of used aircraft. The cost of an average interior encompassing the Buyer Furnished Equipment (BFE) for a B777-300ER approximates $14 million including overhead crew rest areas. For a more sophisticated interior this can increase to more than $16 million. At $16...January 16, 2012
The offering of two engine manufacturers on the A320neo inevitably raises the question of whether one or the other airframe/engine combination should exhibit a higher value. The competition between the CFM56 Leap 1A and the Pratt & Whitney PW1100G is inevitably fierce both in technical and commercial terms. The determination of whether one powerplant justifies a premium over the other is not purely a...January 16, 2012
The market for freighters continues to be volatile with some operators acquiring additional capacity while others are suspending operations. The suspension of services by Jade Cargo in December underlines the negatives facing the air cargo industry. Jade Cargo is co-owned by Air China and Lufthansa both of which have their own cargo entities. Air China acquired part control of Jade Cargo as a result of the...
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