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Aircraft Asset Assessment

August 31, 2009

Market Presence. The -500 has a limited market presence. There are currently 18 -500s being advertised for sale or lease. Though five percent of the fleet is being advertised, relatively limited availability is no justification for assuming that current values remain stable. Values and lease rentals of older B737s face identical problems to other types, the B737-500 being just as much a commodity as the MD80 series. As an out of production Stage 3 narrowbody, residuals of the -500 are not assured. The limited operator base and the potential placement of a large number on the market in the coming years provides sufficient cause to carefully assess prospect for current and future values.

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