Aircraft Value News [January 27, 2003] -

Issue: January 27, 2003

Tough Year for Some Rentals as United Proposes Drastic Cuts

Carrier Seeks to Take Advantage of Sustained Weak Market The prospect of United Airlines being forced to close its doors is increasing the pressure on lessors to accept substantial reductions in rentals during the current restructuring. The loss of $3.5 billion for 2002, draining cash reserves, and the lack of…

By: Aircraft Value News

January 27, 2003

AVN

Impetus for Dual Currency Mounts as Airbus Prices in Euros

The proven ability of Euroland to trade and finance capital goods in euros has spurred Airbus to provide aircraft prices in both U.S. dollars and the European currency. The move reflects increasing economic reality as well as perhaps a wider political desire to create a European identity for the aviation…

By: Aircraft Value News

January 27, 2003

AVN

Long Term Residuals Gain From Axing of Sonic Cruiser

Residual values of aircraft in production may enjoy a boost as a result of the cancellation of the high speed and even higher profile Sonic Cruiser in mid December 2002. Ever since the Sonic Cruiser was prematurely thrust onto the aviation stage in 2001, there existed the prospect of a…

By: Aircraft Value News

January 27, 2003

AVN

Values Fail to Rise Amidst Sustained Uncertainty

The continued uncertainty over the outcome of events in the Middle East and the restructuring of United Airlines has failed to create an environment suited to a revival of the fortunes of even newer Stage 3 equipment. A year ago, it had been expected that by the beginning of 2003,…

By: Aircraft Value News

January 27, 2003

AVN

Airbus Residuals Gain From Improving Market Position

Though 2002 proved to be a dismal year for both Airbus and Boeing, the larger net order book secured by Airbus, the greater backlog and the prospect of more deliveries than Boeing in 2003, provides for relative consolidation of existing Airbus residuals. For years Airbus has been in Boeing's shadow.…

By: Aircraft Value News

January 27, 2003

AVN

Weak Freighter Rentals Mimic U.S. Economy

The difficulties being experienced by Atlas underline the fragility of the freighter market. The period in the run up to the Christmas period provided a respite for freighter operators who enjoyed a measure of growth. The sustained military build up in the Middle East is likely to provide further business…

By: Aircraft Value News

January 27, 2003

AVN

A321-200 Experiences Slow Sales

While the A321 garnered nine orders in 2002 the same number of cancellations caused the order book to stagnate. After a sluggish start and an extended gestation period for a mere stretch, orders for the A321 continued to mount, perhaps at the expense of the B757. In the first 10…

By: Aircraft Value News

January 27, 2003

AVN

Northwest DC9 Retention Does Little for Values

The decision by Northwest Airlines, one of the few U.S. majors managing to stem the flow of excess red ink, to keep the DC9s in the air for perhaps another 15 years is unlikely to have any impact on depressed values for the type. The retention of the DC9 contrasts…

By: Aircraft Value News

January 27, 2003

AVN

Surplus Turboprops Find Crumb of Comfort in Corporate Sector

Finding homes for surplus used turboprops is increasingly focusing on the corporate market where straight sales are more likely to feature than discounted lease rentals. The last year has seen most turboprop manufacturers of note seek to turn their surplus passenger aircraft into revenue earning freighters but demand is slow…

By: Aircraft Value News

January 27, 2003

AVN