Aircraft Value News [August 04, 2008] -

Issue: August 04, 2008

Narrowbody Lease Rentals Face Testing Times

Rates for Older Aircraft Continue to Decline The lease rentals for narrowbodies continue to face a myriad of contrasting pressures with the newer equipment in particular seeking to marry the conflicting issues of increased demand and more expensive finance with the problems being faced by operators and weaker traffic. The…

By: Aircraft Value News

August 4, 2008

AVN

Raft of Losses & Fleet Reductions Indicate Major Potential Problems for Values

The losses announced by AMR ($1.4 billion), Delta ($1.044 billion), United (2.7 billion), Northwest ($377 million), US Airways ($567 million) as well as others in the second quarter of 2008 make it difficult to ignore the possibility of further major fleet contractions in the coming months. While the problems of…

By: Aircraft Value News

August 4, 2008

AVN

Asking Prices Remain Resilient Despite Market Pressures

The market may be increasingly vulnerable to excess supply but for the moment asking prices remain relatively strong, comparing favorably with values. Two A300-600s of 1984 vintage are being offered for sale by two different companies, one based in Canada and the other in Sri Lanka for $7 million and…

By: Aircraft Value News

August 4, 2008

AVN

Widebody Values Weaken Slightly

The widebody segment of the market may have previously been seen as the bright spot for the industry but even this area cannot disguise the considerable problems of the airline industry. The financial community is mindful of the vulnerability of the industry to not only oil price spikes but also…

By: Aircraft Value News

August 4, 2008

AVN

Freighter Rentals Continue to Experience Fragility

The weakness of the wider economy has continued to undermine the lease rentals of some equipment while others are at best holding steady. The fragility of the world economy, notably in the U.S., has continued to prompt a note of caution with respect to the freighter market. The most notable…

By: Aircraft Value News

August 4, 2008

AVN

B717 Values Have Nowhere to Hide

With the ending of production, the values of the B717 managed to slip further though such declines were forecast. The ending of production saw the delivery of only 155 units, far short of the 400 deemed necessary for values to stand a chance of achieving even stability. The Boeing B717-200,…

By: Aircraft Value News

August 4, 2008

AVN

Aircraft Asset Assessment: The B717

Market Presence. The lack of success for the B717 has little to do with its performance and capability. The ruggedness of the design has made it ideal for short haul operations. In-service experience has also proven that efficiency was better than forecast. Such is the capability of the aircraft that…

By: Aircraft Value News

August 4, 2008

AVN

Launch of CSeries Likely To See Shift In Residuals for Some Existing Models

In launching the CSeries Bombardier finally realized that it needed to take advantage of the move towards more efficient equipment even if firm orders were not forthcoming. With a commitment from Lufthansa for 60 aircraft and an Entry into Service date of 2013 there exists considerable opportunity to develop the…

By: Aircraft Value News

August 4, 2008

AVN