Market Presence. The market has seen the introduction of many new operators but nearly all have favored the larger narrowbody variants. The new and expanding Asian carriers have sufficient traffic to warrant the use of larger aircraft. The focus on the 150 rather than the 130 seaters raises the question of how easy the remarketing of A319s and B737-700s, mostly delivered in the 1990s and early 2000s, will be in the coming years. While replacement of the B737-300 and the -400 is seen as a possible source of demand for used A319s and B737-700s, the market structure will continue to favor the larger types. Residual values of the A319 and B737-700 have mostly been based on the expectation that the two aircraft would remain key players of the market. For the time being this is still the projection but should new orders continue to sidestep the two variants then some adjustment to residual values in the long term may be necessary.
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