FOR CURRENT &
FUTURE AIRCRAFT VALUES
Subscribe Now
Aircraft Archive: McDonnell Douglas
Maintenance Reserves for New Aircraft May Need to Be Lower
The loss of so much maintenance, repair, overhaul (MRO) business as a consequence of the Covid Event has meant that the costs associated with such activity may have become more competitive as facilities seek business. Maintenance reserves charged by lessors on both narrowbody and widebody aircraft need to adequately reflect…

Read more

March 15, 2021
AVI
Some Widebody Values Still Falling
Every single passenger widebody suffered a fall to a greater or lesser extent due to the Covid Event and some are continuing to decline as it becomes evident that there will be no prompt return to service. The higher price of fuel is also beginning to have an effect on…

Read more

March 15, 2021
AVI
Newer Narrowbody Rates On Brink of Recovery
There can be no escaping that rates on a like for like basis have been decimated for some aircraft types but that the newer models have suffered to a lesser extent. As the market begins to recover, the newer aircraft types will returned to service that much sooner allowing rates…

Read more

March 15, 2021
AVI
Values Fall to Scrap Levels
The experience of the A340-500 – and indeed the -600 -underlines the dangers of taking the easy option and failing to appreciate the competitive landscape and changing market structure. The A340-500 was designed and developed in the 1990s, eventually being delivered post 2001. In the 1990s, the long haul market…

Read more

March 15, 2021
AVI
Aircraft Asset Assessment
The A340-500 Market Presence. The A340-500 offered much when proposed but the mistake lay in maintaining a flawed philosophy. The four engines seemingly provided reliability and safety but it was already evident that two engines would also satisfy the same objective. The A340-500 may have been the cheaper option to…

Read more

March 15, 2021
AVI
Future Recedes Year by Year As Boeing Pursues “B797” Green Light
Residual Values of A321 Competitor Risk Rapid Decline To paraphrase F Scott Fitzgerald from the concluding page of the Great Gatsby “Boeing had come a long way and their dream must have seemed so close that they could hardly fail to grasp it. They did not know that it was…

Read more

March 1, 2021
AVI
Grounding of PW4000 B777’s Has Potential to Impact Already Weak Values
The grounding of the Pratt & Whitney powered B777’s may affect values of the airframe / engine combination should the problem become a more permanent issue. Some 140 B777-200/-200ERs powered by the PW4000s were available for service prior to the uncontained engine failure. However, 85 were already in storage due…

Read more

March 1, 2021
AVI
Defunct TAME Ecuador Seeks to Sell Aircraft At Discount
TAME Ecuador suspended operations in March 2020 but the government liquidated the carrier in May 2020 and now the aircraft are up for sale. The aircraft are in storage. The aircraft involved include a 2011 ATR42-500 MSN 844 which has an indicated value of $3.35 million; ATR42-500 MSN 849, also…

Read more

March 1, 2021
AVI