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Aircraft Archive: Airbus AIRCRAFT
Impairment Starts to be Addressed
The need for financial institutions, lessors and operators to consider impairment is coming much more to the fore although there will be a temptation to argue that the order of magnitude cannot be assessed at this stage. The need for impairment though is growing as it becomes ever more evident…

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April 27, 2020
AVN
Currently Depressed Simulator Values Will See Surge With Recovery
The values of simulators have experienced a considerable drop in recent months as demand has inevitably been impacted but this will likely quickly change with the return of air services albeit subject to a different structure. The demand for simulator space pre-Covid was high as the worlds’ fleet expanded, new…

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April 27, 2020
AVN
Widebody Values Plunge
The fall in the values of widebodies has been precipitous and significant. While the market has experienced downturns before, the global nature of the crisis, coupled with the specific and long lasting effect on aviation, has meant that the widebodies have suffered the greatest declines. The values of widebodies will…

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April 27, 2020
AVN
Freighter Rates Have Potential to Rise
In all the mayhem that that Covid is creating the one bright spot is freighters. The demand for various goods and the loss of belly hold capacity has seen a rapid rise in demand for freight space even to the extent that passenger aircraft have been returned to service –…

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April 27, 2020
AVN
Narrowbodies Fare Better than Widebodies
COVID-19 has had a disastrous effect on the values of virtually all aircraft types but some narrowbodies are managing to shrug off the worst of the discounting. In this issue, a ROM (rough order of magnitude) is provided for narrowbodies in terms of the level of discounting to be applied…

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April 14, 2020
AVN
Turboprops Experience Downward Pressure
The market for turboprops is experiencing slightly different dynamics than the commercial jet market. Many turboprop flights are necessary due to the absence of surface transportation and the need to maintain links with remoter parts. However, turboprops have been heavily impacted by the drop in leisure routes around the world.…

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April 14, 2020
AVN
ERJ145 Values Experience Significant Fall Over Last Decade
The values of the ERJ145 – originally designated the EMB145 – have fallen by more than 85 percent over the course of the last 12 years. The values of a new ERJ145 in 1996 approximated $14 million and by the time production ended in the mid 2000’s, the value of…

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April 14, 2020
AVN
Discounting of Market Values & Lease Rentals Begin in Earnest
Magnitude of Market Movements Not Uniform The effect of COVID-19 on the airline industry cannot be overestimated with nearly half of the worlds fleet grounded but with the extent now beginning to be fully appreciated, the effect on values and lease rentals can be more accurately assessed, particularly as the…

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April 14, 2020
AVN