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Aircraft Archive: McDonnell Douglas
Lessor Reduces Depreciation Policy to 25 Years Plus 15% of Original Cost
The dash for new aircraft in recent years due to high fuel prices and the emergence of new carriers has caused the seeming earlier than expected retirement of used aircraft and this is beginning to work its way into the depreciation policies use by both owners as well as tax…

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November 3, 2014
AVN
Values of A321neo Likely to be Enhanced by 97t Variant
The values of the A321neo are already achieving a premium above those of the B737-9MAX but the proposed 97 tonne variant will likely see a further improvement and reduce the potential for any B757 replacement from Boeing. At present there still exists no direct replacement for the B757, a type…

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November 3, 2014
AVN
… While Freight Conversion Offers Prospect of Stronger A321ceo Residuals
The probable launch of a passenger to freight program for the A32-200 in early next year by EFW offers the prospect of better residual value prospects. The passenger to freighter modification could see conversions taking place in 2017 which would be some 20 years after the first unit suitable for…

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November 3, 2014
AVN
Rentals for Newer Narrowbodies Remain Stable
The demand for newer narrowbodies continues such that the orders secured by Boeing in the first nine months of 2014 surpassed expectations for the year as a whole. Similarly, Airbus has continued to record new orders. Macro factors are now contributing to an element of stability for lease rentals as…

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November 3, 2014
AVN
Impact of New Aircraft Starts to be Felt
With the planned reduction in A330 production due to the transition to the A330neo and the expectation of a similar change in rates for the B777 should new orders for the -300ER fail to materialize, then values of aircraft delivered in the final years of the respective programs are showing…

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November 3, 2014
AVN
B747-8F Values Fail to Make Headway
The market for the -8F continues to be fragile with new examples acting to displace existing -400SF/Fs. Boeing launched the B747-8F on November 14, 2005, with firm orders for 18 B747-8 Freighters; 10 from Cargolux of Luxembourg and eight from Nippon Cargo Airlines — NCA — of Japan. Boeing had…

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November 3, 2014
AVN
CSeries Values Still an Enigma
The placement of 40 orders by Macquarie AirFinance takes the CSeries total to 243 aircraft representing a reasonable number but still insufficient to wrest uncertainty away from current and residual values. The delay to the program remains a concern as is the comparative lack of orders. Airbus and Boeing have…

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October 20, 2014
AVN
“Value” of BFE Essential Part of Widebody Equation
The value versus cost of the Buyer Furnished Equipment (BFE) is increasingly being viewed as a separate item from the rest of the airframe by financial institutions, specifically when considering the larger widebodies such as the B777-300ER and A380. BFE and Specification Changes Notices (SCNs) are the two sets of…

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October 20, 2014
AVN