FOR CURRENT &
FUTURE AIRCRAFT VALUES
Subscribe Now
Aircraft Archive: McDonnell Douglas
“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…

Read more

October 20, 2014
AVN
CRJ900 Values Edge Downwards
The CRJ900 has been a best seller for Bombardier and represents the majority of CRJ aircraft now being delivered. Virtually as soon as the first CRJ100ER entered service with Lufthansa - if not before - some existing and potential customers sought a larger version of the CRJ200 aircraft. While the…

Read more

October 20, 2014
AVN
First Flight of A320neo Fails to Dent A320ceo Values
A320ceo Exhibits Non Traditional Market Value Behavior The first flight of the A320neo turns a new page rather than heralds a new chapter for aviation - and potentially for values - as the aircraft seems destined to complement rather than replace in the short to medium term. The development of…

Read more

October 20, 2014
AVN
Price of Stage 2 Aircraft Irrelevant
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. The Aircraft Rating (Value Rating courtesy of…

Read more

October 20, 2014
AVN
Lease Rentals Still in Doldrums
There continues to be a lag between the improvement in airfreight traffic and any change in freighter lease rentals. IATA reports that the freight traffic for august 2014 increased by 5.1 percent compared to a year ago. This follows July which saw a 6.1 percent rise. Asian and North American…

Read more

October 20, 2014
AVN
Lessors Make More from Full Life Returns than Maintenance Reserves
There continues to be an expectation that increasingly common full life return conditions will generate a measure of profit for lessors and financial institutions. Maintenance reserves, paid by the lessee to the lessor, have traditionally been a tool by which maintenance events are adequately compensated for, representing a means by…

Read more

October 20, 2014
AVN
Financing of Middle Age Aircraft Becomes Possible Again
The European ISTAT Conference in Istanbul saw an increase in enthusiasm for Middle Age (MA) aircraft, previously seen as difficult to finance. Air Lease Corporation indicated that ten year old aircraft may be able to secure debt financing amounting to 70-75percent of the appraised value. This greater appetite for used…

Read more

October 6, 2014
AVN
Values Remain Steady Despite A330neo
The launch of the A330neo will likely limit the potential improvement in values of aircraft yet to be delivered but for those already in service and less than ten years of age, the impact is minimal. At one time, the -300 was so overshadowed by the success of the -200…

Read more

October 6, 2014
AVN