Residual values of the existing ATR42-500 and ATR72-500 are likely to experience only a modest readjustment as a result of the launch of the -600. The values of the ATR42-500 and ATR72-500 have been riding high over the course of the last year due in no small part to the rise in the price of fuel and a...
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Residual values of the existing ATR42-500 and ATR72-500 are likely to experience only a modest readjustment as a result of the launch of the -600.
The values of the ATR42-500 and ATR72-500 have been riding high over the course of the last year due in no small part to the rise in the price of fuel and a shortage of used and new availability. Residual values have also seen a modest improvement not least because of the absence of a direct replacement in the foreseeable future. With production of the existing -500 series already stretching back for nearly a decade, there has been an expectation that some modest changes would be made in the coming years.
The -600 is seen as an incremental, but nonetheless, important development. The improvements are to the existing design center on the avionics, engine, weight and cabin but not the fuselage structure nor capacity, at least not directly. The creation of an all new ATR model would have been a costly exercise. By increasing the capacity of the ATR72 in particular, seat mile costs could have been reduced but even with the hike in recent production rates there was no guarantee that sufficient orders would materialize to justify the investment. Though engine improvements have been made, there has still not been sufficient advance to warrant an all new aircraft.
The principal benefits of the -600 as they relate to overshadowing the -500 center on the increase in weight and the incorporation of more powerful engines in the form of the PW127M. The maximum take off weight will increase by 300kgs with an optional further increase of an additional 200kgs. Combined with engines that offer more power for hot and high operations, the weight increases represent a significant improvement in operational flexibility and potential increase in revenue. With the average passenger weight in the all important U.S. and European markets increasing, performance of 50 and 70 seat turboprops has been adversely affected on some routes. The increase in MTOW for the ATR72-600 will allow at least the carriage of two more passengers on previously weight restricted routes.
The aircraft most likely to be impacted by the availability of the -600 are the earlier versions of the ATR42 and ATR72, notably the -320 and -210 series. The earlier variants are now of an age when replacement is falling due and with two changes to the baseline specification, there will now be sufficient improvement in baseline operating costs to justify a replacement. With the expectation that some change to the specification of the -500 was to be made, residual values of earlier variants have already declined to some extent. Should earlier examples of the ATR42 and ATR72 come onto the market, this will at least provide feedstock for the freighter conversion program that is currently facing a shortage of suitable conversion candidates, at least at the right price.
The first -600s will enter service in the second half of 2010 but no customers have yet been announced. The list price of the ATR42-600 and ATR72-600 has yet to be announced.
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