Aircraft Value News [March 21, 2005] -

Issue: March 21, 2005

Widebody Rentals Continue to Edge Higher

Despite the high price of fuel, international traffic continues to grow at a sufficient rate to outstrip supply, thereby allowing lease rentals a measure of further improvement. While the U.S. legacy carriers, except those plying the Pacific, continue to face substantive hurdles to survival, the rest of the international market…

By: Aircraft Value News

March 21, 2005

AVN

Older Widebody Values Find No Solace In Rising International Traffic

The demand for older widebodies continues to weaken as the high price of fuel forces operators to acquire newer, more fuel-efficient models. The parking lots are already full of unwanted older widebodies. Placement with second- and third-tier carriers is possible but usually only for shorter terms. With the cost of…

By: Aircraft Value News

March 21, 2005

AVN

A318 Residuals Continue to Face Difficult Times

Despite having been in service for nearly two years, the fortunes of the A318 have not improved. The cancellation of the B717 program by Boeing [BA] points to continued difficulties for the 100-seat market. The departure of the B717 is not likely to lead to improved market conditions for the…

By: Aircraft Value News

March 21, 2005

AVN

Passenger Weight Increase Spoils Values of Lesser Regional Aircraft

The Federal Aviation Administration's (FAA) decision to increase the average passenger weight from 200 pounds to 220 pounds (91 kg to 100 kg) is forcing manufacturers of aircraft with 100 seats or less to consider upgrading existing equipment, which potentially could affect values of existing equipment. Any change in average…

By: Aircraft Value News

March 21, 2005

AVN

First Flight of B777-200LR Still Leaves Values in Lurch

Following the highly successful publicity surrounding the rollout of the B777-200LR, the first flight would seem to offer the opportunity for further orders to emerge as operators start to appreciate the advantages offered by long-range twins. Residual values of the B777-200LR are proving difficult to estimate at the present time.…

By: Aircraft Value News

March 21, 2005

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B767 Values Set for Rough Ride as Shutdown Decision Looms

Boeing Expected to Suspend Commercial Production; Tanker Future Still Possible However Boeing [BA] resolves its current leadership crisis, its new CEO is expected to have to make tough decision by mid-year on whether the B767 line should be closed down until the delivery of the US Air Force fleet of…

By: Aircraft Value News

March 21, 2005

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Jetsgo Failure Weakens Prospects for Values of Older Types

The collapse of Canadian carrier Jetsgo continues to underline the fragility of the Canadian market and the prospects for leasing older equipment to new startups. Jetsgo has a fleet of some 18 Fokker 100s and 14 MD83s. Though the company is seeking to restructure and may reemerge under the Canadian…

By: Aircraft Value News

March 21, 2005

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Boeing Capital Corporation Seeks to Spread Risk on B787 Financing

Boeing Capital Corporation (BCC) is seeking to finance the B787 by pooling the funds of third party investors, thereby potentially easing the financing process and aiding sales. The ability to more easily secure financing via packages put together but not financed by the manufacturer has been one of the primary…

By: Aircraft Value News

March 21, 2005

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Atlas Air Recovery Aids B747-400F Values

Atlas Air's anticipated reversal of a loss in 2003 to a reasonable profit in 2004 should help to remove some of the negatives surrounding the B747-400F and allow values to register at worst stability and rentals to achieve an increase. Atlas Air recorded a $6 million operating loss in 2003…

By: Aircraft Value News

March 21, 2005

AVN