Aircraft Value News [February 07, 2005] -

Issue: February 07, 2005

A340-300 Values Show Resilience

Despite the arrival of the A340-600 and an upgrade to the -300, values of the existing -300 continue to achieve a measure of stability, not least because of the lack of appetite among U.S. carriers. The long-range capability of the A340-300 has to date provided a measure of success for…

By: Aircraft Value News

February 7, 2005

AVN

Embraer Range Boost Highlights Need for Careful Value Assessment

The decision by Embraer [ERJ] to increase the maximum takeoff weight of the new ERJ190 and ERJ195, designating these aircraft as "Advanced Range" variants, increases the difficulty in defining current and residual values. The range of the ERJ190AR and 195AR will facilitate an increase in range. While standard payload/range diagrams…

By: Aircraft Value News

February 7, 2005

AVN

Plight of U.S. Legacy Carriers Continues to Hold Back Value Growth

The continued difficulty of the U.S. majors in overcoming inherent high cost structures is at best preventing any substantive rise in values of new equipment and at worst is leading to continued distressed sale assumptions by affected financial institutions. Just four U.S. majors, American [AMR], Continental [CAL], Delta [DAL] and…

By: Aircraft Value News

February 7, 2005

AVN

Boeing's Cancellation of B717 Hits Values Hard

Current & Residual Values Based on Minimum Production Run Boeing's [BA] decision to finally axe the B717 after years of uncertainty has drawn a line under values of the beleaguered aircraft. Current and residual value projections for the B717 have mostly been calculated on the basis of an assumed minimum…

By: Aircraft Value News

February 7, 2005

AVN

Age Related Values Lose Significance for Some Older Types

Differentiating current values on the basis of age is losing its significance for some older types, a trait that has long been in evidence for lease rentals. The process of calculating current and residual values has long been partially dependent on the year of build. With a seeming constant rise…

By: Aircraft Value News

February 7, 2005

AVN

Rentals Show Rise by Default

The rise in interest rates has been the main cause of any improvement in the lease rentals of older widebodies. Widebodies no longer in production continue to face difficulty due to the sustained improvement of the industry. The combination of previous high levels of availability and storage combined with increased…

By: Aircraft Value News

February 7, 2005

AVN

Widebody Values Settle For Stability

The current market conditions may suggest that sustained growth is in the cards, but too many negatives remain during the first quarter to justify any increase in widebody values. The problems being experienced by the U.S. legacy carriers continue to dominate the current market conditions making any significant increase in…

By: Aircraft Value News

February 7, 2005

AVN