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Aircraft Archive: Airbus
Asset Value Irrelevant for Chapter 2 Values
Placing a value on an asset suggests that it has some appeal beyond that of an existing operator or owner but unfortunately in the case of Chapter 2 aircraft interest is so limited as to make most types unsuitable for asset based financing. This will be the last time this…

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May 5, 2014
AVI
Aircraft Asset Assessment: MD90
Market Presence. The reasonable operating economics, low noise footprint and restriction emissions have failed to generate interest in the type in recent years even when alternatives were in short supply. The number of pilots certificated on the aircraft is limited as are spares making it difficult for operators to acquire…

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May 5, 2014
AVI
Pricing & Values of B777-300ERs Yet to be Delivered Under Scrutiny
While the development of the B777X may be causing problems for Airbus with respect to the A350-1000, the new Boeing aircraft also increases the pressure on the B777-300ER in the coming years in terms of maintaining production. In 2013 Boeing delivered 79 B777-300ERs. The first three months of 2014 also…

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May 5, 2014
AVI
Rentals of Freighters Stable
The growth in airfreight continues to have a positive impact on freighter lease rentals. The problem for the airfreight market is that by adding capacity load factors can be reduced making it difficult for operators to increase yields and therefore contemplate additional capacity. The price of fuel is a positive…

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May 5, 2014
AVI
Narrowbody Parting Out Values Expected to Fall In Long Term
The parting out of relatively young A320 and B737NG family members has perhaps more relevance to the current value of the engines but this will change over time such that current parting out values will not be able to be sustained into the long term. The parting out of aircraft…

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May 5, 2014
AVI
Aircraft Asset Assessment: B767-300
Market Presence. The B767-300 has an extremely limited market presence. The absence of orders and deliveries within the last decade has increased the expectation of difficult trading conditions. With only eleven operators, of which three possess more than 75 percent of the fleet, future demand for used units in a…

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April 21, 2014
AVI
Placing Value on CFM56-3 Engines On Basis of LLP Cost Becomes Irrelevant
The appetite for complete CFM56-3 engines remains extremely weak as spare parts continue to flood the sector making it less realistic to value engines on the basis of the LLP replacement cost. The problem for the CFM56-3 market resides with the considerable imbalance between supply and demand. With the parting…

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April 21, 2014
AVI
B767-300 Values Also Set to Disappoint
The limited customer base for the -300 was always likely to see a lack of secondary market and inevitably values have fallen by a significant amount for many years such that they are now nudging scrap levels. The problems facing the B767-300 program are indicated by the order status. Only…

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April 21, 2014
AVI