Aircraft Value News [March 06, 2006] -

Issue: March 06, 2006

MD11 Pricing Enjoys Reversal of Fortunes

Passenger Pricing Jumps Due to Freighter Demand As demand for freighter capacity continues to grow, it is helping to alleviate the negative effects associated with acquiring passenger-configured McDonnell Douglas MD11s, and the values and prices of this aircraft are being forced upward. Values and prices of passenger-configured MD11s previously had…

By: Aircraft Value News

March 6, 2006

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Ex-Delta B767-300s Attract Expected Sub $10-Million Pricing

The values of Boeing [BA] B767-300s have long been under pressure, but the values have been largely theoretical due to the absence of trading activity. Four ex-Delta Air Lines [DALRQ.PK] B767-300s are reportedly in the process of being acquired by Hawaiian Airlines. The aircraft, three from Wilmington Trust/Marathon Structured Finance…

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March 6, 2006

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Airbus A340 Residuals 'On Watch' Status as Twins Take Hold

The residual, and indeed the current, values of the Airbus A340 are under scrutiny as the preference for twin-engine widebodies enters a new phase. Orders for widebodies in 2005 were heavily skewed in favor of Boeing [BA]. The high price of fuel played a significant role in determining the relative…

By: Aircraft Value News

March 6, 2006

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Rentals Rise Despite Higher Fuel Prices

The lease rentals of in production widebody aircraft have generally risen over the last quarter due to sustained demand for capacity and the extending order backlog. The recent renegotiations undertaken by Delta Air Lines [DALRQ.PK]and Northwest Airlines [NWACQ.PK] point to a sustained improvement in lease rentals even for the largest…

By: Aircraft Value News

March 6, 2006

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Strong Demand for Cargo Overcomes Lean Quarter

The first quarter of the year is always a lean period for cargo carriers after the end-of-the-year holiday rush. But in this climate of sustained economic growth, there continues to be demand for capacity. The need for military lift has also played an important role in sustaining the demand for…

By: Aircraft Value News

March 6, 2006

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MD87 Values Near Scrap Levels

Values and rentals of the MD87 have continued to slide as the aircraft becomes the focus of fleet replacement. It is facing concerns over noise, the preference for newer types and rising maintenance costs. McDonnell Douglas sought to offer a competitor to the Boeing [BA] B737-300 by downsizing the basic…

By: Aircraft Value News

March 6, 2006

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New CFM56 Variant Set to Become the Baseline, at the Expense of Current Models

The testing of the Tech Insertion package for the CFM56-5B used on the Airbus A320 family, and the -7B powering the Boeing [BA] B737NG, is nearing completion. Introduction next year will represent a sufficient shift to cause values of existing powerplants to suffer a modest decline. The certification of the…

By: Aircraft Value News

March 6, 2006

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