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Aircraft Archive: Bombardier
B737MAX Cancellations Mount
The cancellation of orders en-masse was not expected pre-Covid due to the strength of the market but with airlines now facing extinction such action has taken on a new imperative with the B737MAX the most obvious target. Boeing delivered only 50 aircraft in the first quarter of 2020 compared to…

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April 27, 2020
AVN
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
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
A380 Values Affected Most by Downturn
Out of an operational fleet of 242 listed by Airbus as of the end of February 2020, there were only 13 A380s in service at the time of writing with every other A380 aircraft listed as being in storage. While a swathe of other aircraft types that are laying idle…

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April 14, 2020
AVN
Storage Costs Start to Mount
Nearly 50 percent of the worlds fleet have already been parked and more, particularly in the U.S., are scheduled to be placed into storage and the longer they remain in storage, the more difficult and expensive will be the return to service. With nearly a 1,000 B737 MAX aircraft in…

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April 14, 2020
AVN
Distressed Values Becomes Relevant Again
The need for financial institutions to consider asset values should a sale be necessary brings distressed sale discounting to the fore once more. The level of discounting needed to dispose of aircraft on a distressed – or fire sale – had achieved a measure of stability for some more popular…

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April 14, 2020
AVN
Aircraft Ratings Register Significant Falls
Ever since The Aircraft Value Analysis Company (AVAC www.aircraftvalues.net) first created the now industry standard Aircraft Ratings in 2003, which became the benchmark for other appraisers and asset based lending, the Ratings have experienced relatively little volatility between one year and the next, but COVID-19 has caused a significant fall…

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April 14, 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