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Aircraft Asset Assessment

May 28, 2007

Market Presence. The MD83 experienced its heyday in the late 1980s and early 1990s. While values started to stumble more than 10 years ago, availability has only became a major issue in recent years. Even before production ceased in 1999, the MD83 was already facing severe pressure from the A320 and newer B737-800. Even the retirement of B727s in quantity could not prevent a slide in fortunes. Instead the MD80 series, including the MD83, became a target for replacement. Concerns over performance capability, the long thin fuselage, absence of wider family, deteriorating operating economics all took their toll on what had become a mainstay of many fleets. The takeover of the then TWA MD83 fleet by American Airlines provided some respite in terms of stalling a rise in availability but more recent events have once again increased the acceleration in the rollover of existing units in favor of newer types. The operator base of the MD83 remains extensive but there can be no hiding the concentration in the U.S. and a few European countries and indeed the propensity of such carriers to seek replacements.

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