Aircraft Value News [May 19, 2014] -

Issue: May 19, 2014

Asian ISTAT Highlights the Potential for Market Changing “M Event”

While the market continues to improve in terms of values of new aircraft and an ever extending backlog, such good times inevitably bring a note of caution. At the recent ISTAT Asian conference, the potential for an “M (Mutating) Event” or “Black Swan Event” whereby the expected trend is either…

By: Aircraft Value News

May 19, 2014

AVN

Parting Out Takes on Greater Significance

While the market for newer widebodies remains strong, for those produced at the start of many existing programs the appetite is much more muted, forcing owners to consider parting out as an alternative to spending millions on new interiors and maintenance. The onward placement of older widebodies can represent a…

By: Aircraft Value News

May 19, 2014

AVN

B737-800 Lease Rentals Peaking

The lease rentals of the ubiquitous B737-800 have enjoyed growth since the recession over recent years but there now exists little opportunity for any further improvement with lease rentals of older examples exhibiting a decline. The B737-800 has now been in service for some 16 years and inevitably there are…

By: Aircraft Value News

May 19, 2014

AVN

Aircraft Asset Assessment: B787-8

Market Presence. The residual values of the B787-8 have previously exhibited above average strength due in part to the corrosion avoiding composite airframe, long term fuel efficiency, and long range performance. The B787 may offer operators new benefits but perhaps residual values also need to consider the range performance, lower…

By: Aircraft Value News

May 19, 2014

AVN

Market Values of New Aircraft Exhibit Modest Rise for 2014

Values of new aircraft delivered in 2014 are in general managing to attract an increase over the value of aircraft when delivered new in 2013, if only just. The overall rise in values in new aircraft is only sufficient to negate the effects of annual escalation on aircraft already ordered.…

By: Aircraft Value News

May 19, 2014

AVN

Values of Marginalized Programs Continue to Tumble

While the values attributed to most newer aircraft are enjoying a modest rise for 2014, those for marginalized programs face challenging times, continuing to fall at a faster than average rate of five percent per annum. The two major manufacturers, Airbus and Boeing, have not always produced the most commercially…

By: Aircraft Value News

May 19, 2014

AVN

Rates for Older In Production Narrowbodies Fall

The lease rentals for the older examples of in-production narrowbodies continues to fall as availability increases and as the preference for newer types mounts. www.aircraftvalues.net or www.aircraftvalues.com. Rates are quoted in thousands of US dollars per month and exclude maintenance reserves. They assume a medium credit, average return conditions and…

By: Aircraft Value News

May 19, 2014

AVN

B787-8 Begins to Realize its Potential

Deliveries are hitting the planned 10.5 per month and operators are enjoying higher reliability levels. The grounding is no more than a distant memory and new routes are being opened up. Values of those now being delivered are therefore holding firm though those produced at the start of the program…

By: Aircraft Value News

May 19, 2014

AVN

B787-9 Values Exhibit Modest Rise as First Delivery In July Nears

Values of the B787-9 have the potential to rise even further should delivery be effected as planned in July and in event service entry is not affected by the myriad of teething problems as with the -8. The flight testing of the B787-9 continues on schedule with four aircraft being…

By: Aircraft Value News

May 19, 2014

AVN