Aircraft Asset Assessment — Embraer E190

Market Presence. The values of the existing E190/E195 have previously been suffering as a result of the significant improvements being made by the E2 variant but the market will become increasingly difficult as the existing units are retired. As the E190E2 has been delivered to customers, it is perhaps inevitable that the appetite for the outgoing E190 and E195 should wane. The future of the E190 fleet of JetBlue was always in doubt when the airline announced a fleet review in March 2017. At that time JetBlue were citing the relatively high operating cost of the E190. JetBlue were the launch customer for the E190 ordering 100 in 2003. The overhaul costs of the CF34 engine can be relatively high with on wing times being approximately 15,000 hours depending on the nature of operations, overhauls costing in excess of $3.0 million and a set of LLPs $2.3 million (25,000 cycle life). Virgin Australia, in a move announced in 2016, removed the last of its five E190s at the beginning of 2018. American also announced in 2016 that it would remove its 25 E190s by the end of 2019. The values and lease rentals of the E190 have therefore experienced a fall in the recent past and this is a trend that is not expected to be reversed any time soon. The values of the oldest E190s are now well into single digits with the values of the newest examples fortunate to be $20 million. The market for the aircraft is clearly in favor of the lessee and buyer.