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Friday, March 28, 2008

RJ Values Unaffected by Capacity Cutbacks

The selection of a number of regional jets for removal is seen as modest in the context of previous, far greater disposals, according to Regional Aviation News’ sister publication Aircraft Value News. “However, this time around the primary market for the regional jet is facing weakness instead of growth,” said Editor Paul Leighton in his analysis of mainline carrier draw-down of both mainline and regional jet aircraft. “Even though production may have essentially ended for the 50 seaters, placing such aircraft at a time when other operators may be contemplating similar behavior may cause difficulties.” Those placing the aircraft have pointed to emerging markets such as the Middle East, Africa and Asia as prime markets for the used jets.

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