Aircraft Value News [June 26, 2006] -

Issue: June 26, 2006

VIP Conversion Provides Source of Demand For Fokker 100

The conversion of three Fokker 100s into VIP transports by French company TAT on behalf of Russian interests is unlikely to herald the recovery of values for the beleaguered types. Values of the Fokker 100 remain in the doldrums due to the absence of demand and sustained high level of…

By: Aircraft Value News

June 26, 2006

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Airbus List Price Hike Matches Boeing

Net Pricing Fails to Register Material Rise The average rise of 4.5 percent in Airbus list prices may match that of Boeing, but keep in mind, this above-inflation increase ensures divergence between values and list prices. The escalating cost of energy, the price of aerospace-related raw material and the rise…

By: Aircraft Value News

June 26, 2006

AVN

A320 Family "Revamp" Obscures Residual Values

The development of an A320 Family "Enhanced" model will become the baseline, potentially weakening the residual values of existing narrowbodies and obscuring the replacement date of both the B737NG and A320 family. The A320 "Enhanced", following the A330 and A340 Enhanced variants, represents a minor mid-life upgrade to the A320…

By: Aircraft Value News

June 26, 2006

AVN

BA Phase Out of A320 Underlines Vulnerability of Older A320 Values

Some of the 10 A320s to be phased out in the coming years could be destined for the junkyard, despite attracting current market values of around $5 million. The early vintage 10 A320s, comprising five -100s and five -200s, were absorbed by British Airways as a result of the takeover…

By: Aircraft Value News

June 26, 2006

AVN

American Returns Take Edge Off B757 Lease Recovery

The return of 19 B757s by American Airlines between 2007 and 2008 is unlikely to have a material impact on values, but will perhaps contain any non-interest related rise in lease rentals. The 19 aircraft are powered by PW2000 engines, while the remainder of the American B757 fleet are powered…

By: Aircraft Value News

June 26, 2006

AVN

Freighter Rentals Stabilize

Airfreight continues sustained growth but with the delivery of new and converted freighters, older types face weakness. The high price of fuel remains a problem for older types. Airfreight companies have been forced to impose fuel surcharges on freight rates. Though pricing elasticity on airfreight is less pronounced than on…

By: Aircraft Value News

June 26, 2006

AVN

Stage 3 Values Experience Modest Rise

Although Airbus and Boeing have announced a more than four percent rise in list prices, the intense competition between the two manufacturers ensures that any rise in values remains muted. The backlog of undelivered orders may be at near record levels, but values have increased by three percent at most…

By: Aircraft Value News

June 26, 2006

AVN

B777-200 Values Stumbling

The market for widebodies may continue to improve, but values of the B777-200 are failing to impress. B777-200 Vital Statistics LAUNCH 12/1989 (-200) FIRST FLIGHT 06/1994 SERVICE ENTRY 05/1995 ORDERS (08/04) 92 DELIVERIES 87 AVAILABILITY 3 OPERATORS 9 ENGINE TYPES Trent, GE90, PW4000 VARIANTS -200, -200ER D CHECK COST $3.2m…

By: Aircraft Value News

June 26, 2006

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50 Seat Regional Jet Conversions Indicate Weaker Residuals

Although they've experienced improvement over the last few months, 50 seat regional jet values still generate sufficient anxiety to spark interest in a freighter conversion program. The 50 seat regional market was rocked late last year and early this year by a series of high profile disposals. Nearly 90 aircraft…

By: Aircraft Value News

June 26, 2006

AVN