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Aircraft Archive: McDonnell Douglas
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…

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March 15, 2021
AVN
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…

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March 15, 2021
AVN
B777-300ERs Values Decline to Parting Out Levels In Less Than 20 Years
The B777-300ER was once the most popular of larger widebodies but values have experienced a significant fall as disposal becomes ever more problematical. When the first B777-300ERs entered service in 2003, the improvement over the B777-300 in terms of payload and range soon made it the aircraft of choice. The…

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March 15, 2021
AVN
Values & Rentals To See Modest Improvement In Coming Months
Recovery Focussed on Newer Aircraft While Older Types Flounder The passenger figures for January from IATA may suggest that the market remains in the doldrums but there are a multitude of positive factors that will see rapid redeployment of at least newer assets in the coming months allowing values and…

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March 15, 2021
AVN
Sun May Set on Narrowbody Residuals as Hyperion Ushers in New Dawn
As the market recovers, and the A320neo family regains value, appraisers will be increasingly seeking to model the effect of the next generation of narrowbodies on the residual values of the current generation. A titan of the current narrowbody product offerings, the popular A320neo family will eventually and inevitably be…

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March 15, 2021
AVN
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…

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March 15, 2021
AVN
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…

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March 1, 2021
AVN
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…

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March 1, 2021
AVN