Aircraft Value News [March 24, 2014] -

Issue: March 24, 2014

B747-400 Values Continue to Fall As More Are Parted Out

The values of the B747-400 are continuing to slide due to advancing age and the arrival of ever more versatile and efficient twins and the A380. At the peak of the market for the B747-400 in 1998 values of new examples were nudging $155 million. Today the same aircraft are…

By: Aircraft Value News

March 24, 2014

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Half to Full Life Adjustments Take Values To New Level

Values of aircraft are increasingly being enhanced by the use of full life maintenance status, making the potential profit for owners that more attractive. Traditionally, aircraft have been valued on a half-life basis except that those examples less than four years of age were valued at better than half life.…

By: Aircraft Value News

March 24, 2014

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Erosion of Backlog Continues to Affect Residuals

As the product line up evolves, and new types are introduced, there needs to be constant vigilance of the prevailing order and delivery status of existing models to accurately assess when values should undergo a change rather than rely on outdated perceptions. Until very recently there was a widely held…

By: Aircraft Value News

March 24, 2014

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B777-200 Values Continue to Decline

There exists a clear appreciation that the market for the -200 has weakened considerably and that values will likely continue to decline. The more limited capability of the -200 when compared to the -200ER is all too apparent. Values have experienced a not entirely unexpected rapid fall. The combination of…

By: Aircraft Value News

March 24, 2014

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Strong Market Keeps Most Values on Even Keel

The values of more modern narrowbodies continue to experience only a modest age related decline. The rise in the backlog – and production rates – has for the last few years led to concern that there will have to be a significant readjustment as market realities take hold. Each time…

By: Aircraft Value News

March 24, 2014

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Aircraft Asset Assessment: B777-200

Market Presence. The B777-200 has experienced the fate of most initial variants of a new model –marginalization within the first decade of service entry. This should provide some pause for thought when considering the B787-8. The difference for the -200 lay with the expectation that such an outcome could be…

By: Aircraft Value News

March 24, 2014

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Accuracy of Forecasts Now Able to be Scrutinized

With the passing of some 25 years since the forecasting of residual values took on a greater sophistication through the use of computer technology and econometric modelling, there now exists considerable opportunity to assess the accuracy of forecasts. The late 1980s saw a transference of responsibility for residual value forecasting…

By: Aircraft Value News

March 24, 2014

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Stable Lease Rentals Continue to Attract Lessors

The lease rentals of turboprops remain sufficiently stable to attract more lessors to the sector. The market for the turboprop operating lease continues to expand as more lessors appreciate the greater margins that are offered by turboprops. The competition is less intense between lessors and the product line more of…

By: Aircraft Value News

March 24, 2014

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