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SARS Containment Unlikely To Induce Capacity Absorbption
The apparent containment of the SARS (severe acute respiratory syndrome) virus in countries other than China is unlikely to lead to an early return of surplus capacity. While the containment outside China suggests that there could be an early end to the crisis, the continued presence of the virus within…

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May 5, 2003
AVN
Market Seeks To Shrug Off Atlas Problems
The restructuring of Atlas has naturally represented a crisis for owners and lessors of cargo equipment, though renegotiation of the carrier's rentals may provide a measure of stability quickly. The operating cost advantage of both the B747-200Fs and -400Fs, in terms of offering operators of the type the lowest unit…

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May 5, 2003
AVN
CRJ200 Values Face Diverse Pressures
Values of the CRJ200, while resisting the decline registered by most narrowbodies, are nonetheless potentially vulnerable to the on-going problems of North American carriers. The relationship between a number of U.S. majors and their smaller partners continues to be in a state of flux. Regional jets can be exposed to…

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May 5, 2003
AVN
Drop in Availability Provides Relief for Industry Dominated by Bad News
A 20 percent fall in the level of jet aircraft availability between September 2002 and April 2003, as reported by BACK Aviation, would appear to be cause for cautious optimism over values were it not for wider structural negatives. Since September 2002, when some 1,054 jet aircraft were listed as…

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May 5, 2003
AVN
B777 Freighter Proposal Has Implications for Other Freighter Residuals
The emergence of a possible B777 freighter design has clear implications for the freighter market, and specifically for values of the dedicated B747-400F as well as the MD11F. Though a freighter version of the B777 is still in its very early stages and is unlikely to be available until the…

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May 5, 2003
AVN
First-Generation Stage 3 Values Face The Abyss
Scrapping Aircraft Could Aid Recovery in Values Dire market conditions, particularly in the United States, continue to buffet values of first-generation Stage 3 aircraft such that parting out has now become a realistic alternative for owners seeking to realize some cash. Until recently, only one B737-300 had been scrapped. Now…

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May 5, 2003
AVN
Stagnation of New Pricing Continues to Impact Residuals
The firm order for 65 A320s plus options for a further 50 from JetBlue, at what can be expected to be a very attractive price, highlights the need to continue to build the effects of stagnating new pricing into residual values. While Airbus and Boeing may be seeking to maintain…

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May 5, 2003
AVN
Manufacturers Pricing Philosophies Can Distort Base Values
The pricing philosophies of aircraft manufacturers can sometimes distort net pricing of new aircraft. Traditionally, Airbus equipment has been viewed as the most expensive. For example in 2002, the list price of the A319 amounted to $48.6 million compared to the $47.0 million for the B737-700; the list price for…

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May 5, 2003
AVN
Stage 2 Values Continue To Topple
Some Stage 2 values may be showing signs of stability, but only because they have reached scrap levels. While concern over the marketability of the first-generation Stage 3 aircraft mounts, the experience of the Stage 2 fleet provides a clue as to future prospects. A market for Stage 2 aircraft…

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May 5, 2003
AVN