Monday, February 5, 2007
AVN Weighs in on T-Prop, Sees Values Improving for RJs
Prices for the oldest ATRs appear to be enjoying reasonable strength and may actually be rising as a result of the difficulty in securing newer models, according to Aircraft Value News, RAN's sister publication. The experience of the ATR family in terms of value enhancement is following that of the Dash 8. Operators are also finding difficulty in locating quality used Dash 8s and are, therefore, willing to pay higher prices.
While ATR may be seeking to double production, in the context of over 800 orders, the number to be produced, combined with renewed demand, lack of alternatives and freighter conversion, used values should remain resilient through to the medium term. (RAN, January 29, Article Link).
Had it gone through, the USAirways/Delta combination, would have had a negative impact on RJ value. Even with the threat, the market for the regional jet has achieved a measure of stability. AVN pointed to ExpressJet Holdings (XJT) plans to serve new routes using its own brand. There had been a danger that after Continental Airlines (CAL) released some 69 aircraft from the airline, that they would be placed onto the open market. However, those are being used in new point-to-point service, as well as plans to use up to 15 aircraft for charter operations, maintaining the pressure on prices. The market for the 50-seat jet in North America therefore still seems viable. The drop in the price of fuel is, naturally, a positive for the smaller regional jets, as is the improvement in yields. For a complete, in-depth analysis of regional jets see the February 5 edition of Aircraft Value News, which includes the value prospects, by type, for all regional jets and the changes in the market since its last analysis in October. More

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