Archives :: Aircraft Value News :: Business & General Aviation
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August 1, 2011
Market Presence. The -500 has a limited market presence. Though some eight percent of the fleet is being advertised, relatively limited availability is no justification for assuming that current values should remain stable. Values and lease rentals of older B737s...September 1, 2008
ILFC Expects Lease Rentals to Weaken Lessors, in continuing to post substantial profits, demonstrates that the market still has considerable flexibility before reliving the turmoil of the early 1990s and post 2001. Engine leasing has become a popular form of leasing in recent years as financial institutions appreciate the ability of such assets to perform over the long term as well as minimizing value...September 1, 2008
The complete collapse of Gemini Air Cargo, resulting in the disposal of eight DC10-30Fs and four MD11Fs, underlines the continued the severity of the market facing the cargo market. The combination of higher fuel prices, and declining economic activity have, as usual, been more keenly felt by cargo operators. The cargo sector is the first to experience problems with any market weakness and the first to...September 1, 2008
While the market for older aircraft may seem to be waning due to the high price of fuel the demand for some aircraft types seems to suggest otherwise. With Aircastle indicating that the average value of its B737 Classics has fallen to approximate $6 million, the less than ubiquitous Fokker 100 seems to be able to sell for more. Aviation PLC of Australia has announced that it has acquired a Fokker 100 for...September 1, 2008
To date the principal focus of the effects of the downturn have focused on the older generation aircraft but as operators face every tougher conditions, the weakness in values has begun to spread to newer types. Gaps have begun to appear in delivery schedules which may allow some operators to accelerate deliveries. As India and China face new pressures, the positive influence on values provided by the...September 1, 2008
Even the fall in the price of fuel cannot disguise the fragility of the 50 seat market and preference for larger aircraft. In the last recession, the major operators in the U.S. sought replace mainline fleets with 50 seaters as a means of quickly reducing capacity and costs. Post 2001, values of the 50 seaters fell by only some 10-15 percent. This time around both the mainline fleets and the 50 seaters are...September 1, 2008
The considerable demand for the CRJ200ER in the late 1990s and the early part of this decade was mostly fuelled by artificial demand in the form of scope clauses. Instead of an orderly change to larger gauge equipment, the rapid transformation of the market structure has laid bare the underlying problems of such aircraft in matching operating costs to demand and yields. The CRJ200ER had previously...September 1, 2008
Market Presence. While the oldest CRJs are more than 16 years of age, Canadair made great strides in adapting the basic corporate jet design to the needs of the tougher commercial market such that its heritage should not be any more of a significant issue than for other regional jets. The operational flexibility of the CRJ has been improved through the incorporation of higher MTOWs and better engines...September 1, 2008
The little heralded switch of existing A319 orders for the larger A320 underlines the severity of the market for the low cost carriers and the increasing propensity to reduce costs by increasing the size of aircraft. easyJet has opted to change 25 existing A319 orders for A320s. Nine A320s are already being operated by the carrier. The change leaves easyJet with a total of 202 orders for the A319 of which...August 18, 2008
B777-300ER Increasingly Favored As Replacement Rather Growth Capacity The medium to long term residual values of the ubiquitous B747-400 are facing increased pressure as a result of the worldwide slowdown in traffic and the increased emphasis on using the most fuel efficient of equipment, notably the B777-300ER. The short term prospects for the B747-400 are expected to be more promising because of the...August 18, 2008
The consistent fall in oil prices to around $115 a barrel at the time of publication, will do little to alleviate the mounting pressure on values of virtually all aircraft types, new or old. Whether the rise in oil prices is a spike, or a long term phenomenon caused by limited investment in production capability, the effect on aircraft values is already apparent. Oil prices may have dipped in the last few...August 18, 2008
The boom in corporate jet prices appears to be over as more sellers drop prices in an attempt to move used aircraft. The corporate jet market has been especially buoyant during the last few years. Aircraft that were bought a few years ago can be worth much more than they originally paid. In terms of residual values, corporate jets have far better prospects although disposal times can be lengthy compared to...August 18, 2008
Production of the A320 stretches back for 20 years and operators are increasingly conscious of the advantages that more modern examples offer. Rising maintenance costs associated with operating older equipment are evident. At nearly 20 years of age the second D check will be approaching. Older engines face more frequent and therefore more expensive overhauls. The need to lease engines or hold spares for...August 18, 2008
The lease rentals of modern narrowbodies continue to face a number of pressures. One the one hand the lessors are appreciative of the still strong demand for more modern aircraft but lessees are also aware of the increasing fragility of the market. With the potential for lease rental weakness, lessors will be seeking the longest leases at the highest rates, particularly given the potential for a...August 18, 2008
The Aircraft Rating afforded to all Chapter 2 aircraft underlines the lack of attraction of such types for asset based financing. While some traders are still able to make money from such types, the aircraft change hands for a fraction of previous prices. There is no escaping that for those that remain in service, the likely next venue is the parking lot in the desert. Even parting out might not be an...August 18, 2008
With the inability to secure efficiency mid sized capacity from Boeing, operators have increasingly turned to the A330-300. Airbus may be selling A330-300s at a higher than desirable discount, not least because of the order quantities, but sales are nonetheless brisk with Emirates being the latest to sign up for 30 units. The A330-300 was developed back in the days when Airbus believed that there should be...August 18, 2008
Market Presence. Airbus has built a reputation around the use of the latest technology including envelope limiting computers, fly by wire and side stick controllers. Despite being designed in the 1980s, the A330 still is still viewed as contemporary though no match for the B787. Engines have undergone some upgrading, specifically the CF6, and the flight deck displays have changed from CRTs to LCDs, the...August 18, 2008
Even though the demand for widebodies remains strong, the older types are again under scrutiny as operators seek to divest themselves of A300-600Rs. China Southern, already having announced the withdrawal of four B777-200s and 12 MD82s, is now set to divest itself of six A300-600Rs and 13 MD90s. This follows a move by American to alter its A300-600R fleet...August 4, 2008
Rates for Older Aircraft Continue to Decline The lease rentals for narrowbodies continue to face a myriad of contrasting pressures with the newer equipment in particular seeking to marry the conflicting issues of increased demand and more expensive finance with the problems being faced by operators and weaker traffic. The lease rentals of the older narrowbodies, the B737-300, -400 and -500 for example...August 4, 2008
The losses announced by AMR ($1.4 billion), Delta ($1.044 billion), United (2.7 billion), Northwest ($377 million), US Airways ($567 million) as well as others in the second quarter of 2008 make it difficult to ignore the possibility of further major fleet contractions in the coming months. While the problems of the U.S. carriers may not be replicated on a global scale, other carriers such as Austrian...
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