Aircraft Value News [November 14, 2005] -

Issue: November 14, 2005

Northwest Lease Rejections Fail to Undermine Current Values

Over 200 Leases Now Rejected or Abandoned But Values of Only a Few Types Suffer Two years ago, a single major U.S. carrier's rejection of more than 200 leases would have been enough to precipitate a crisis of confidence among financial institutions across the globe. Today, while consternation and anxiety…

By: Aircraft Value News

November 14, 2005

AVN

Relative Strength of CSeries Residuals Still in Limbo

While Northwest Airlines [NWACQ] seeks to cut costs by rejecting the leases on more than 200 aircraft, the carrier continues to be a primary potential customer for Bombardier's [BBD] proposed CSeries airliner, potentially providing the basis for reasonable residuals should the program proceed to launch, development, and finally production. Any…

By: Aircraft Value News

November 14, 2005

AVN

Suspension of CRJ200 Production Places Further Pressure on Values

The 50-seat regional jet market continues to face adverse pressure, especially since Bombardier [BBD] decided that it will temporarily suspend production of the CRJ200 beginning in mid-January 2006. The suspension of production is of little surprise as the market for the 50-seat RJs in the United States has faltered over…

By: Aircraft Value News

November 14, 2005

AVN

Value Difference Between CFM56- and V2500-Powered A320s Narrows

The modest difference in values between the CFM56-powered and V2500-powered Airbus A320s has continued to narrow in recent years as the number of orders placed for the latter has increased. Ten years ago, the difference in A320 values between the two engine types amounted to approximately $400,000. This has since…

By: Aircraft Value News

November 14, 2005

AVN

Rise In Narrowbody Rentals Slows

Lease rentals of in-production narrowbodies continue to increase, but the rate of growth has slowed due to the high price of fuel. Fuel prices have continued to pose problems for the aviation industry. The prospect of further corporate failures due to the extra fuel burden is ever present as the…

By: Aircraft Value News

November 14, 2005

AVN

Upcoming Peak Season Ensures Strong Demand

The imminent arrival of the peak holiday season ensures that the demand for cargo space remains strong. Lease rentals of a number of types continue to improve due to the shortage of capacity, though the high price of fuel is playing a large role in operators turning their attention to…

By: Aircraft Value News

November 14, 2005

AVN

MD11 Values Aided By Freighter Demand

The international market is enjoying continued growth, but the principal cause of value stability for the McDonnell Douglas MD11 lies with the high demand for freighters. The international scheduled market is undergoing sustained improvement. Unfortunately for the MD11, it is no longer viewed as the prime solution for the needs…

By: Aircraft Value News

November 14, 2005

AVN

B747-400ERF Leases for '$1.06 million' Per Month

The leasing of new Boeing [BA] B747-400ERFs, despite the imminent launch of the -400 Advanced Freighter, continues to allow Boeing to maintain sufficient production until the new type emerges. TNT Express has leased two B747-400ERFs from Guggenheim Aviation Partners (GAP). The aircraft are due to be delivered in 2006 and…

By: Aircraft Value News

November 14, 2005

AVN

Residuals Need to Establish Bird Flu Scenarios

While the improved market conditions for aviation make it tempting to ignore some of the negatives that have the potential to impact demand, there is a growing need to understand the possible effects that bird flu - if it mutates to a human-borne disease - will have on air transport…

By: Aircraft Value News

November 14, 2005

AVN