Aircraft Asset Assessment: The B737-200ADV

Market Presence. Clockwork gauges have long since lost their appeal but the -200ADV still remains a credible and cheap alternative to replacement products. The improvements made to the B737 with the -200ADV greatly enhanced operational performance. Shorter take-off capability and reasonable range performance...

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Market Presence. Clockwork gauges have long since lost their appeal but the -200ADV still remains a credible and cheap alternative to replacement products. The improvements made to the B737 with the -200ADV greatly enhanced operational performance. Shorter take-off capability and reasonable range performance represented attractive features. The current crop of narrowbodies and larger regional jets, however, offer longer range and make it increasingly difficult for the -200ADV to compete on any level, albeit at a higher capital or leasing cost. The switch to newer types has been accelerated by mounting operating costs and events of the last seven years.

Market Outlook. Hushkits threw a lifeline to a type facing operational bans in the key U.S. markets but excess availability has become rife once more. High fuel prices, low yields, increasing maintenance costs and noise issues have made the type increasingly uneconomic. The market structure of the 1990s may have provided a reprieve for the -200ADV but even hushkits and reasonable performance have not prevented a rapid deterioration of values during the first decade of the 21^st Century, a trend that has resulted in near scrap levels emerging. While still a good aircraft in many respects and bound to remain favored by a wide range of operators for the short to medium term, no reprieve is in prospect this time around.

The B737-200ADV has experienced a variety of fortunes during its 35-year life. Availability is a major problem with usually only those in good condition able to benefit from any prospect of placement. Even experienced brokers and lessors are hard pushed to extract good returns.