Aircraft Value News [December 11, 2006] -

Issue: December 11, 2006

A350XWB Go-Ahead Removes Some Residual Uncertainty

Further Rise In B787 Values Will Be Hard To Reverse With some 450 orders for various members of the B787 family, the competition to the newly launched A350XWB will prove difficult to overcome. While design details remain elusive, the A350XWB appears to offer the type of improvements over the existing…

By: Aircraft Value News

December 11, 2006

AVN

A320 Hybrid Would Upset Residual Calculations

Should the potential early re-engining of the A320 gain credibility, existing residuals of the A320 and B737NG families would experience significant reassessment. Pratt & Whitney are reportedly suggesting that a variant of its Geared Turbofan could be used to essentially re-engine the A320 family. With ground testing of the Geared…

By: Aircraft Value News

December 11, 2006

AVN

Potential Alitalia Bankruptcy Fails To Dent Values

While the U.S legacy carriers may be edging back from bankruptcy, the fate of Alitalia continues to hang in the balance along with its fleet of some 150 aircraft. Alitalia continues to lurch from crisis to crisis. The Italian government has set a deadline of January 31st, 2007 to find…

By: Aircraft Value News

December 11, 2006

AVN

Demand For Capacity Fails To Inspire Values Of Older Types

There continues to be pressure on the market for additional capacity. In the main, such demand continues to focus on the newer types while older Stage 2, modified or otherwise, are not only ignored but also the target for replacement. This period of recovery does not follow the traditional trend.…

By: Aircraft Value News

December 11, 2006

AVN

Rates For Larger Regional Jets Remain Strong

The operating lease market for the regional jet market remains a shadow of the narrowbody market but, depending on where the aircraft are leased, the rentals are remaining stable, at least for the larger examples. The regional jet market has failed to elicit the type of response from the lessors…

By: Aircraft Value News

December 11, 2006

AVN

Values Of A318 Decline Despite Market Strength

The market for mainline 100 seaters such as the A318 continue to decline despite the lack of supply for other members of the B737NG and a320 families. The cancellation of the B717 program by Boeing pointed to continued difficulties for the 100-seat market. Even the departure of the B717 from…

By: Aircraft Value News

December 11, 2006

AVN

Aircraft Asset Assessment

Market Presence As a member of the A320 family, technology is not an issue for the A318. Technical obsolescence will not feature for many years or at least until the A320 family is upgraded or replaced. The interior of the A318, providing a wider diameter than the competition, is already…

By: Aircraft Value News

December 11, 2006

AVN

Planned A320 Freighter Conversion Likely To Improve Residuals

The experience of the period 2002 and 2003 still rings loud for lessors and owners but at least during the next downturn the uptake in freighter conversions should alleviate the level of availability and the pressure on residual values. The period 2002-2003 saw a rapid rise in the level of…

By: Aircraft Value News

December 11, 2006

AVN