Aircraft Value News [March 10, 2014] -

Issue: March 10, 2014

Rentals Remain Stable for Newer Aircraft

The lease rentals of the newer regional jets are stable at present as operators continue to favor larger and younger equipment. Rates in general are still holding relatively steady but could rise again if interest rates shift upwards. There are more lessors moving into the market which has the potential…

By: Aircraft Value News

March 10, 2014

AVN

Engine Manufacturers Support Programs Reduce Emphasis on Market Shares

The rapid expansion of engine support programs makes relative market shares of lesser significance in terms of residual value expectations. At one time the relative market shares of the engine manufacturers on a specific airframe could justify a considerable difference in values between engine types. The difference between the PW2000…

By: Aircraft Value News

March 10, 2014

AVN

Aircraft Asset Assessment: A320

Market Presence. With more than 190 operators the A320 enjoys an established base which is just as strong as any Boeing product. The large number of orders placed by the lessors underlines confidence in the type even with the development of the A320neo.The ability of Airbus to also penetrate the…

By: Aircraft Value News

March 10, 2014

AVN

Freighter Values Have Opportunity to Stabilize

The values of freighter aircraft may be turning the corner though the events in Ukraine may have some impact. IATA cites airfreight growth as being in line with industrial production whereas in the past it has exhibited twice the growth. For the month of January 2014 compared to January 2013,…

By: Aircraft Value News

March 10, 2014

AVN

Upgrade Plans for P&W GTF Affects A320neo Values

A significant improvement in the fuel efficiency of the Pratt & Whitney PW1100G powering the A320neo family raises the issue of whether the upgrade should warrant a premium or whether values of the first examples should be discounted. Incremental improvement to an engine is always to be expected and all…

By: Aircraft Value News

March 10, 2014

AVN

Values of Older Engines Keep on Falling

There is a generally held perception that engines hold their value much better than the airframes that they power. This is a correct assumption. However, engines need continual investment for their value to be held and there comes a time when the operator base of installed engines contracts to a…

By: Aircraft Value News

March 10, 2014

AVN

Short Term Improvements More Influential On A380 Residuals Than A380neo

The advances made in engine design over the last few years has increased the impetus for re-engining the A380 but Airbus is naturally delaying any such development. With A380 orders and delivery rates perhaps falling short of expectations there is a reluctance to invest more money in the program, at…

By: Aircraft Value News

March 10, 2014

AVN

Residuals of Current A330 Un-phased by Potential for “A330neo”

While there is considerable appetite for the longer range capability of the A350 and B787, the changing market structure will likely see a sustained need for capacity rather absolute range and this makes a case for an A330neo. Reminiscent of the origins of the A350, a re-engined A330 is again…

By: Aircraft Value News

March 10, 2014

AVN

A320 Values See Modest Improvement

The values of the A320ceo have experienced a modest improvement as a result of strong demand which is prompted Airbus to increase production again. The demand for newer equipment, as a means of reducing costs, remains sufficiently strong as to allow the values of new A320s to exceed $40 million…

By: Aircraft Value News

March 10, 2014

AVN