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Monday, January 21, 2008

Turboprop Rentals Continue to Remain Strong

While there may be hiccups for the turboprop sector in terms of the disposal of the SAS Dash 8 fleet, the overall turboprop market remains strong as evidenced by the stream of new orders. With respect to longer-term residuals the current crop of turboprops are likely to face challenges from a new generation...

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While there may be hiccups for the turboprop sector in terms of the disposal of the SAS Dash 8 fleet, the overall turboprop market remains strong as evidenced by the stream of new orders.

With respect to longer-term residuals the current crop of turboprops are likely to face challenges from a new generation of derivatives and even replacements. However in the short term, the pressure on fuel prices will continue to see existing models in considerable demand.

Bombardier are expected to suffer a temporary blow due to the disposal of the SAS fleet. As the situation was more a consequence of the needs of the airline to initiate a response to the high profile landing incidents, the wider market is taking a more relaxed view of the difficulties. The surplus aircraft emanating from SAS are expected to be placed into service with other operators within a matter of months, not precluding any difficulty in unraveling financial arrangements.

Rentals are expressed in thousands of US dollars and are for indicative purposes only. Long lease terms, less credit worthy lessee, return conditions, will vary rentals considerably.

Aircraft Rentals courtesy of The Aircraft Value Analysis Company http://www.aircraftvalues.net.


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