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Aircraft Archive: Airbus AIRCRAFT
Freighter Values Continue to Experience Weakness
The airfreight market remains in the doldrums which is causing particular concern for values. The airfreight traffic for June as reported by IATA showed only the most modest of improvements. The only bright spot was the Middle East which showed double digit growth. With only 0.8 percent increase in traffic…

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August 13, 2012
AVN
Lower Rentals for A319 Open Up Secondary Markets
Allegiant Air Starts to Pick Up Bargains to Fuel Growth The Las Vegas carrier Allegiant Air, in selecting the A319 to provide the necessary capacity to expand operations, acquired the aircraft because “A319 asset values have significantly declined and now mirror the environment we saw when we (Allegiant Air) first…

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August 13, 2012
AVN
Lessors Continue to Manage Market Weakness
Despite the decline in lease rentals over at least the last six months, the lessors continue to report mostly satisfactory results but lower rates will need to be matched by more competitive acquisition prices. In the second quarter of 2012, Aircastle, had net income of $16.3 million on $172.2 million…

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August 13, 2012
AVN
Lower Demand & Pricing Force Scrapping of “Current” Generation Aircraft
The move towards newer aircraft at the expense of relatively modern aircraft continues apace as a result of lower pricing for what only a few years ago were considered prime assets. The values attributed to some aircraft are at odds with the imperatives felt by some owners. A third ex-Lufthansa…

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August 13, 2012
AVN
Stretched Fokker 100 Likely to See Lack Luster Residuals
The proposed stretch to the Fokker 100, now potentially powered by the Pratt & Whitney PW1X17G, is likely to face an uphill struggle when compared to clean sheet designs such that residual values could experience some difficulty. The re-starting of Fokker 100 production has been mooted for many years but…

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July 30, 2012
AVN
Lease Rentals Continue to Weaken
Although new sales remain strong, the lease rentals of narrowbodies continue to weaken slightly as supply increases and demand falls. The reason for lower rentals is due to the reconnection of the aviation industry in the latter part of 2011 to the wider economic malaise that still prevails. New start…

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July 30, 2012
AVN
Most Widebody Values Decline
While the values of some widebodies remain stable, there are a number that continue to face falls. The older widebodies are most at risk from the fall in values as operators continue to move to newer types. The values of the B777-300ER and A330-300, rather than rising as has been…

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July 30, 2012
AVN
A340-600 Values Continue to Fade
The demand for the A340-600 failed to advance when fuel prices exhibited a consistent rise leaving the market to the B777-300ER. The high price of fuel, which became evident more than four years ago, increased the fuel disadvantage suffered by four engined jets versus twins. Such is the cost saving…

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July 30, 2012
AVN