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Archive: Rotorcraft Top Stories
Capacity Shortage Forces Rentals Higher
The demand for cargo capacity seems insatiable, despite the high price of fuel. There is now a shortage of quality and modern equipment capable of accommodating the needs of operators, and lease rentals are rising as a result. High fuel prices have yet to have made a discernible impact on…

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October 31, 2005
AVN
Values Continue to Enjoy Rise Despite Fuel Worries
The high price of fuel may cause problems for the world economy, but demand for international travel is so high that quality widebody equipment is in short supply, which has allowed values to register a further modest improvement. The high price of fuel remains a constant worry for the airlines…

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October 31, 2005
AVN
B777-300 Residuals Continue to Sputter
The market for widebodies continues to improve. But with a declining backlog and an advancing B777-300ER delivery rate, the values of the Boeing [BA] B777-300 are experiencing a substantive, if theoretical, fall. Virtually all B777-300s remain with their original customers, which makes it difficult to determine market values. Orders for…

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October 31, 2005
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SAS MD80 Retention Fails to Stop Decline in Values
The decision by SAS to continue to operating more than 80 MD80s is not expected to halt the decline in MD80 values. The large number in service and the weak financial status of SAS have persuaded the company to retain the aircraft despite the high price of fuel. Citing known…

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October 31, 2005
AVN
B767-300ER Rentals Continue to Climb
Despite the financial problems being experienced by the U.S. majors and the concern over fuel prices, the international travel market continues to expand, with demand outstripping supply. This has led to a shortage of Boeing B767-300ERs. Although the B767-300ER is destined to be replaced by the B787 in the coming…

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October 31, 2005
AVN
Strong Demand for New Widebodies Likely to Impact Residual Values
Launch of A350 Seen as Hampered by Lack of Supply In an era of such high fuel prices, the simultaneous development of the Airbus A350 and Boeing [BA] B787 has the potential to accelerate a decline in values of existing products to levels lower than those previously projected. The launch…

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October 17, 2005
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Tax Hike in India Could Rein in Demand from Key Indian Market
India has emerged as a key source of demand for Western jets, and this support has aided the recent improvement in lease rentals. But substantive increases in leasing costs in that country could result in a curtailment of new leases. Indian airlines have been on an acquisition spree in recent…

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October 17, 2005
AVN
GECAS & GATX Orders Point to Availability of Discounted Pricing
The aircraft orders placed by lessors GE Capital Aviation Services (GECAS) and GATX Air would seem to indicate that attractive pricing for new equipment from Airbus is still available. There is still a strong correlation between new and used pricing. When new net prices are increasing, there is some justification…

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October 17, 2005
AVN