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Aircraft Archive: McDonnell Douglas
Maintenance Reserves Typically Higher Than End of Lease Payments
The maintenance reserves paid by lessees to lessors can be typically higher than the lump sum end of lease payments but the calculation of the full life adjustment as it relates to the value of the aircraft usually equates to the end of lease payment. The calculation for maintenance reserves…

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April 2, 2018
AVN
A340-300 Values at Scrap Levels
The values of the A340-300 have continued to fall such they are now at virtually scrap levels. At least 40 have been scrapped and a similar number are lying idle in storage with little likelihood of being returned to service. The aircraft has increasingly been replaced by newer twins and…

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April 2, 2018
AVN
ATR72-600 Rates Return from Precipice
The market for the latest, larger turboprops has not been stable over the last 12-18 months. Some of the seemingly more marketable turboprops have been experiencing considerable volatility associated with an extending product life cycle and greater used availability with the ATR72-600 being particularly impacted. The -600 indeed suffered during…

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April 2, 2018
AVN
A340-500 Values Tested With Marketing of Four More Units
Values have Fallen by 90+ Percent in Just Over Ten Years The fall in the value of used widebodies continues to be a concern although the decline in the values of the A340-500 represents the extreme. While the values of used mainstream narrowbodies continue to enjoy a measure of success…

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April 2, 2018
AVN
B747-400F Experience Shows Voltatility for Rentals
The lease rentals of the B747-400F are rising again in the context of an improving airfreight market although the prospect of a trade war precipitated by the U.S. has the potential to undermine recent gains particularly for the B747-400F which is reliant on traffic to and from China. The experience…

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April 2, 2018
AVN
Aircraft Asset Assessment- A340-300
Market Presence. The A340-300 has previously provided operators with considerable operating flexibility but no longer. The four-engine configuration, combined with long haul capability, opened up a number of routes unable to support either the larger B777-300ER or the ETOPs constrained twin engined B777-200ER. The –300 has CFM56-5 engines while the…

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April 2, 2018
AVN
Lease Encumbered Current Market Values
As the number of aircraft traded on a standalone basis diminishes, aircraft values are increasingly needing to assess the value of the attached lease – the Lease Encumbered Current Market Value (LECMV) or Securitized Value (SV). The number and more importantly, the proportion of aircraft being leased has been increasing…

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March 19, 2018
AVN
Lessors Seek to Minimize Widebody Reconfiguration Costs
Costs Can Be Contained by Advanced Planning The lessors have always tended to shy away from leasing the larger widebodies because of the more limited remarketing opportunities and the sometimes substantial reconfiguration costs and extended timescales when moving aircraft between lessees. The narrowbodies usually require little reconfiguration not least because…

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March 19, 2018
AVN