'Unloved' Aircraft Types Still Being Transacted

Despite the low regard for certain types of aircraft, the ability to continue to trade them points to at least some basis for values. Two MD82s have been acquired by Air Adriatic from Alitalia for a combined price of �10 million, equivalent to US$13.4 million. At a unit price of $6.5 million, this is in...

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Despite the low regard for certain types of aircraft, the ability to continue to trade them points to at least some basis for values.

Two MD82s have been acquired by Air Adriatic from Alitalia for a combined price of �10 million, equivalent to US$13.4 million. At a unit price of $6.5 million, this is in excess of the $2 million sometimes being attributed to MD82s. However, condition is everything for such aircraft. The two MD82s are part of a batch of 11 sisterships being sold by Alitalia as a means of cutting costs and generating revenues.

AMS Aircraft Limited, on behalf of a small syndicate of European banks, has sold a 1991 PW4000 powered B747-400 Combi (MSN 25074) to Fortress Investment Group LLC. The aircraft was operated by Air Canada before being returned off lease in October this year. The aircraft is undergoing a heavy check before being operated by a new lessee. The PW4000 B747-400 has been perceived to be one of the most difficult of aircraft to place ever since United Airlines placed a number of units on the market nearly two years ago. However, this sale underlines the ability to not only sell the aircraft but also to find a new lessee. The sale price was not disclosed. An ex-Air Canada B767-200, another of the less attractive assets, has been acquired for use by Iraqi Airways, which is are also looking to acquire an additional three B767s.

The difficulties of US Airways as well as Independence Air are likely to result in earlier than expected availability of A319s. US Airways, as part of a deal with GE Capital Aviation Services to take regional jets, is to return 10 A319s during the course of 2005 as well as 15 B737-300s in 2006 and 2007.