Aircraft Value News [May 01, 2006] -

Issue: May 01, 2006

Higher Fuel Prices May Put Brakes on Value Improvement

Escalating Fuel Prices Increase Vulnerability of New & Established Carriers With oil prices nearing $75 a barrel, the potential for further airline failures and the resulting increase in aircraft availability will restrict the opportunity for values to register any further material improvement. Airlines around the world are imposing fuel surcharges…

By: Aircraft Value News

May 1, 2006

AVN

Kingfisher A340-500 Order Fails to Prevent Further Weakening of Values

The order for five Airbus A340-500s plus five options from ambitious Indian carrier, Kingfisher Airlines, has failed to prevent the aircraft values from experiencing a marked decline over the course of the last six months. The high price of fuel has played an important role in seemingly devaluing both the…

By: Aircraft Value News

May 1, 2006

AVN

Scrapping of MD90s Highlights Fragility of Value of Marginalized Products

The further part scrapping of two MD90s underlines the problems still being experienced by values of less popular types and the potential difficulties of increasingly marginalized products in the future. Source One Spares of the U.S. has purchased two ex-Uni Air MD90s for scrapping its parts. JT Power has purchased…

By: Aircraft Value News

May 1, 2006

AVN

Polar Air Freezes Out Older B747 Freighters

The parking of five B747 freighters at a time when the cargo market is clamoring for additional capacity provides an illustration of how inefficient the early B747 freighters have become, suggesting that values should continue to experience a decline. Polar Air, part of Atlas Air Worldwide Holdings (AAWH), is scheduled…

By: Aircraft Value News

May 1, 2006

AVN

Rise in Older Narrowbody Rentals Slows

The rise in the rentals of older aircraft has slowed so that the preceding three months has seen only a modest increase. Some examples of narrowbodies no longer in production remain in considerable demand, which allows for rates to register a slight improvement. But the extensive backlog for newer products…

By: Aircraft Value News

May 1, 2006

AVN

Older Widebody Values Continue to Decline

The older widebodies continue to possess low self-esteem due to the rising cost of fuel and maintenance. The MD11 is the only out of production widebody to show any improvement and this is a consequence of the demand for this type as a freighter. The most notable trend is evidenced…

By: Aircraft Value News

May 1, 2006

AVN

Junkyard Beckons MD82s

Whatever the perceived opportunities that the MD82 offers in terms of lower capital costs, operators continue to dispose of the type in favor of newer, more efficient, equipment. Around seven years ago, the lack of availability and relative strength of the airline industry prevented values of the MD80 from sliding…

By: Aircraft Value News

May 1, 2006

AVN

Simulator Values Under Scrutiny As Market Looks At Lesser Compliance

The introduction of a new generation of lesser simulators to provide recurrent training for pilots has the potential to reduce the emphasis on full flight simulators, thereby impacting the demand for such comprehensive machines and ultimately, values. Full flight Level D compliant devices dominate the simulator market. These offer the…

By: Aircraft Value News

May 1, 2006

AVN