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Higher Fuel Prices Pose Threat to Value Improvement
Losses for the Airline Industry Are Mounting The high price of fuel, exacerbated by the effects of Hurricane Katrina in the United States, continues to cause considerable problems for the airline industry and is likely to further contain the improvement in values of newer aircraft types and stimulate another decline…

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September 19, 2005
AVN
High Fuel Prices Prompt Southwest to Seek B737-700 Replacement
The strong request from a prime Boeing [BA] customer, Southwest Airlines [LUV], for the U.S. manufacturer to develop a much more fuel-efficient replacement for the B737-700 is likely to increase speculation that a new B737 will emerge within the next seven years. The chief executive of Southwest, Gary Keller, has…

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September 19, 2005
AVN
Extended Boeing Strike Could Lift Short-Term Lease Rates
While aircraft values are not expected to be impacted by a short-term strike at Boeing, lease rentals may be buoyed should the walkout extend beyond 30 days. A strike will not initially impact deliveries but will as the days progress. Some suppliers and component manufacturers will have to start production…

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September 19, 2005
AVN
Boeing B767-200 Transactions Abound at Prices Below $10 Million
There may be only about 200 Boeing B767-200s in operation, but a number of examples have been moving at pricing that is well below $10 million. US Airways [UAIRQ] has undertaken the sale and leaseback of four B767-200ERs. After seeking invitations to purchase from some 80 buyers, of which 25…

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September 19, 2005
AVN
Chapter 2 Values Fail to Gain from Shortage
The values of Chapter 2 aircraft continue to decline despite the overall shortage of newer equipment. The high price of fuel has served to accelerate the replacement of older units, at least where operators have been able to secure alternative equipment. For most Chapter 2 aircraft, values are at scrap…

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September 19, 2005
AVN
Rentals of Regional Jets Unfazed By Changes
The move toward larger regional jets continues, stimulated by the rising price of fuel. But lease rates remain virtually unchanged for even the 50 seaters, which are declining in popularity. The arrival of the larger regional jets, exemplified by the recent certification of Embraer [ERJ] 170/190 family products, has the…

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September 19, 2005
AVN
Prospects for 50-Seat Regional Jet Residuals Continue to Falter
Residual values of 50-seat regional jets remain under scrutiny as operators continue to shy away from placing new orders and seek larger equipment. Bombardier [BBD] has been hit hard by the cutback in orders for 50 seaters. Higher fuel prices have cut into operating margins for even the leaner regional…

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September 19, 2005
AVN
Chapter 11 Filings to Impact Values of Specific Aircraft
The bankruptcy filings of Delta Air Lines [DAL] and Northwest Airlines [NWAC] is expected to lead to the disposal of a number of aircraft, but in contrast to previous filings of US Airways [UAIRQ] and United Airlines [UALAQ], the impact on values will be type-specific rather than industry-wide. The market…

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September 19, 2005
AVN
Values of A319s Continue to Improve
As demand continues to outstrip supply, the imbalance has allowed values of the Airbus A319 to register a measure of improvement. The operator and customer base of the A319 has proven to be sufficiently diverse to permit comparisons with the competing Boeing B737-700 on an equal basis. For an aircraft…

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September 19, 2005
AVN
As A350 Launch Edges Closer, Residuals of A330-200s Come Under Scrutiny
The imminent launch of the Airbus A350-800 has once again raised the issue of whether medium- to long-term residuals of the A330-200 should be adjusted downward. The Letter of Intent for 60 A350 orders placed by Qatar Airways, signed after months of negotiation, makes it almost certain that Airbus will…

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September 19, 2005
AVN