Aircraft Value News [June 28, 2004] -

Issue: June 28, 2004

Virgin America & JetBlue Orders Consolidate A320 Penetration of U.S.

The selection of the A320 family by new low-fare carrier Virgin America, coupled with JetBlue's [JBLU] additional orders, provides further evidence that Boeing's [BA] dominance in the U.S. domestic market has been eradicated. While some of the U.S. mainline carriers continue to face restructuring at best and collapse at worst,…

By: Aircraft Value News

June 28, 2004

AVN

China Order Brings A330-300 Values Back into Spotlight

Fresh Orders Breath Life into Residuals An order for 30 A330-300s from China Aviation Supplies Import & Export Group Corp. (CASGC) represents a 15 percent boost to -300 orders, potentially providing the foundation for renewed strength in residual values. The order, intended to replace China Eastern's A300-600Rs, comes after a…

By: Aircraft Value News

June 28, 2004

AVN

'2009' Entry of B747-400 Advanced Fails to Dent Existing Residual Projections

The continued reevaluation and tweaking of the B747-400 design in an attempt to counter the threat of the A380 has done little to change existing residual value projections. The latest proposal for an enhanced B747-400, of which there have been a number, focuses on the use of the ceiling area…

By: Aircraft Value News

June 28, 2004

AVN

30 Percent Drop in Aircraft Availability Aids Rental Recovery

The steady decline in the level of aircraft availability over the last 12 months has contributed to stability in values and a rise in lease rentals of most aircraft in production. BACK Aviation cites a 30 percent fall in the number of aircraft being advertised for sale or lease over…

By: Aircraft Value News

June 28, 2004

AVN

Regional Jet Rentals Ease Upward

Rates for most regional jets have either remained static or increased slightly over the course of the last quarter. Lease rentals usually move up with the arrival of the peak Northern Hemisphere summer season. Schedules expand to meet demand generated by vacation traffic, and operators enjoy heightened revenues. During this…

By: Aircraft Value News

June 28, 2004

AVN

'Scribing' Caused by Paint Removal May Reduce Aircraft Values

The identification of cracks in 53 aircraft -- B747-400s, B757s and B737-200ADVs -- caused by incorrect removal of sealant and paint could put a severe dent in values for the affected aircraft. The use of metal rather than wooden tools to remove sealant and paint from lap joints can result…

By: Aircraft Value News

June 28, 2004

AVN

Widebody Values Begin to Improve

The excess of widebodies in production has been re-absorbed into the market, helping values begin to rise. The market for widebodies during the previous three years has been characterized by potential and actual availability. Both Airbus and Boeing [BA] have been active in re-marketing their surplus aircraft with notable success.…

By: Aircraft Value News

June 28, 2004

AVN

DC9 Values Lose Asset Value Relevance

Values of DC9s have fallen to well below $1 million, including those with hushkits, making parting out one of the principal options for the aircraft. The stretched version of the DC9-10 was initially designated the -20, although this was soon changed to the -30. The stretch was facilitated by the…

By: Aircraft Value News

June 28, 2004

AVN

Emergence of 'A330-200 Lite' Unlikely to Impact Existing Values

The reduction in the maximum takeoff weight of the A330-200 to produce a "Lite" variant to meet the needs of regional operations is not expected to impact the values of the existing A330-200. The competition to equip premier carrier Singapore Airlines (SIA) has resulted in the development of enhanced products,…

By: Aircraft Value News

June 28, 2004

AVN