Aircraft Value News [May 30, 2005] -

Issue: May 30, 2005

B747-400 Freighter Conversion Cost Dips to $15 Million

Atlas Air Moves Into Freighter Conversion Market Again The cost of converting a B747-400 continues to decline, which not only makes the program more affordable, but allows for more surplus units on the market to be absorbed back into service. Atlas Air has announced a contract with Israel Aircraft Industries…

By: Aircraft Value News

May 30, 2005

AVN

Strong International Demand Lifts U.S. Leasing Companies Out Of Slump

The U.S. aircraft leasing industry is poised for a substantial comeback in coming years following a severe slump after 9/11. The brisk resurgence of demand for widebody and narrowbody aircraft is coming from countries such as China and India, as well as those in the Middle East and Europe. Some…

By: Aircraft Value News

May 30, 2005

AVN

Signs of Relief Emerge for Fokker 100 Values

While values of the Fokker 100, the youngest of which is still less than 10 years of age, have been under pressure for the last five years, but the placement of some surplus examples with operators has at least provided the foundation for some stability. Rolls-Royce [RYCEF] and Fokker Services…

By: Aircraft Value News

May 30, 2005

AVN

Plight of U.S. Airlines Continues to Contain Rise in Values

Today's considerable imbalance between supply and demand - with demand winning - should be generating sufficient friction in the marketplace to stoke up values of many aircraft types. But to date, most of the focus has been on rentals. Much of this is due to the continued financial problems associated…

By: Aircraft Value News

May 30, 2005

AVN

Chapter 2 Values Approaching Scrap Levels

While the values of newer aircraft types continue to strengthen, the values of Chapter 2 aircraft have failed to register any improvement. There is now a discernible shortage of quality equipment, but the market continues to turn away from older examples despite their low capital cost. The lack of newer…

By: Aircraft Value News

May 30, 2005

AVN

Regional Jet Lease Rentals Remain Stable

Despite the concerns about the decline in values of 50-seat regional jets and their prospects in the marketplace over the coming years, lease rentals are still managing to remain stable. The values of 50-seat regional jets have experienced modest weakness over the last year. This stems from concerns about the…

By: Aircraft Value News

May 30, 2005

AVN

ERJ145 Values Continue to Experience A Decline

The values of 50-seat regional jets have been under pressure for at least a year, a consequence of rising operating costs and the market moving toward larger equipment. The restructuring undertaken by the major U.S. airlines clearly benefited the 50-seat regional jet, and values managed to avoid the falls that…

By: Aircraft Value News

May 30, 2005

AVN

Strong Demand Not Enough to Prevent Parting Out of Newer Aircraft

While many headlines may be focusing on the demand for certain aircraft and the placement of new orders, there may be a different story to tell: Newer aircraft that should be in considerable demand are being scrapped, which may highlight the fragility of the market. Two ex United B737-500s (serial…

By: Aircraft Value News

May 30, 2005

AVN