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Monday, August 23, 2004

Regional Jet Values For August 2004

Values in the following table are in US$ millions and are based on The Aircraft Value Reference published by The Aircraft Value Analysis Co., on the Web at http://www.aircraftvalues.net. An Aircraft Rating has been included for the first time for regional jets, reflecting the suitability of these aircraft for asset-based financing over the medium term with a range of A++ (best) through to E-- (worst).

 

Rating Aircraft Age Value Analysis
B ERJ145ER, (U.S.) 1996, 2001, 2003 10.2, 14.1, 16.2 Continues to be well respected, but the absence of overhead bins on one side of the cabin can cause mutterings among passengers.
B CRJ200ER, (U.S.) 1996, 1999, 2001, 2003 12.1, 14.9, 16.5, 18.4 Retains credibility despite having lost some its most favored status. In comparative terms, any weakness in values is relatively modest and is as much due to age as it is market-related.
B- CRJ700, (U.S.) 2000, 2003 16.5, 20.8 Values have deteriorated with the arrival of the ERJ170 and the dilution effect of CRJ705. A further decline is expected. The CRJ700s operated by European airlines can attract a premium of more than $1 million, due to their higher specifications.
B-- CRJ100ER 1993, 1998 9.2, 13.0 Values have fallen 3 percent over the last few months, illustrating that the 50-seat regional jet market has clearly matured. Maintenance issues are taking on greater significance for older models. Fuel consumption can also be a concern for operators.
B-- ERJ135ER, 1999, 2001 9.6, 11.2 Has enjoyed notable success, but again the high price of fuel can cause problems for operators. The limited capacity of the ERJ135 makes it difficult for higher fuel prices to be easily absorbed through the carriage of additional passengers. Values are expected to decline.
C++ Avro RJ85 1993, 1998 8.5, 12.5 Retains considerable merit in the regional market. The four engines have minor reliability and maintenance issues. The engines are frugal in terms of fuel consumption and the low noise footprint makes it well suited to regional airports. Values are likely to experience a further fall as new aircraft enter the market in greater quantity.
C++ Avro RJ100 1993, 1998 9.5, 13.6 Produces the kind of operating economics needed by regional carriers. The last few years have seen value weakness. In common with all 100-seat aircraft, the market segment is being largely bypassed by the current recovery.
C+ Avro RJ70 1993, 1996 7.1, 9.6 Balances between being marginalized and meeting a niche need. Has value for corporate use. A further 8 percent decline is expected within the next 12 months.
C- BAe146-200 1985, 1993 3.2, 6.2 The recent decline in value is modest, as the -200 has lost some of its relevance. The wide passenger cabin and support packages from the manufacturer make this aircraft viable for a number of operators. The -200 is some 75 to 90 percent cheaper than a new 70-80 seater.
C- BAe146-300 1988, 1993 4.6, 6.6 Has proven to be a useful member of the BAe146 family. However, values are reflecting age and greater availability of alternative equipment, not least the Avro variants.
C- BAe146-100 1983, 1988 2.1, 3.8 Values continue to deteriorate in a market that is experiencing the arrival of a greater number of 70-seat twin-engine regional jets. Other aircraft models of a similar vintage have already been parted out.
D- 328JET 1999, 2001 5.9, 6.5 Values have continued to deteriorate. Values will at best remain at current levels until the delivery of newly built aircraft commences.
D-- Fokker 70 1995 5.0 Manages to provide good service for a limited number of operators. The Tay engine may not be the most efficient. Values have declined, but with less than 10 years of service, current values are a shadow of the original price.
D-- Fokker 100 1987, 1993 2.5, 4.3 Values are one of the few of the regional jet segment to register an improvement. A number of aircraft have been placed with a variety of operators over the last six months
Source: Aircraft Value News

 

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