Aircraft Value News [November 17, 2014] -

Issue: November 17, 2014

New Narrowbody Has No Impact on Long Term Residuals - Yet

Residual forecasts for the B737MAX, due to enter service around 2017, are only now being calculated but Boeing is already indicating that a replacement is being planned for circa 2030 due to the pressure from emerging manufacturers in China and elsewhere. The CEO of Boeing, Jim McNerney, reportedly indicated in…

By: Aircraft Value News

November 17, 2014

AVN

Strong Results for Lessors Point to Resilient Lease Rentals

The rationale for the almost weekly formation new lessors continues is centered on a business model that allows for exceptional rates of return when compared to other asset classes. While in the aftermath of the financial crisis of 2007-2008 rates faltered, rentals have since recovered and for most modern types…

By: Aircraft Value News

November 17, 2014

AVN

A340-500 Values Experience Convergence

The issue of value convergence eventually affects all aircraft and for the A340-500 this has come perhaps sooner than most. Value Convergence is evident when values of the youngest converge on the oldest with the latter falling less quickly than the former. While values are normally inherently dependent on the…

By: Aircraft Value News

November 17, 2014

AVN

Lease Rentals Stable for Most RJs

The lease rentals of the regional jets are experiencing a measure of stability after receding from recent peaks. The issue of lower interest rates and reduced inflationary pressures are likely to play a role in reducing any upward pressure in lease rentals. The lease rentals of the older regional jets…

By: Aircraft Value News

November 17, 2014

AVN

Freighter Values Fail to Advance

With so much capacity in the market exemplified by low load factors and given that there remain a large number of freighters parked, it is little wonder that values are failing to match the modest improvement in airfreight traffic. The fall in the price of fuel will provide the opportunity…

By: Aircraft Value News

November 17, 2014

AVN

ERJ145 Values Face Pressures

Values of the 50 seat Embraer have fallen by some ten percent during the course of the last six months reflecting weaker market conditions for the type. The 50 seat market has continued to experience weakness as operators have increasingly moved to larger jet and turboprop offerings. The demand for…

By: Aircraft Value News

November 17, 2014

AVN

AVACs Aircraft Ratings Face Downward Trend

Aircraft Ratings, first developed by The Aircraft Value Analysis Company (AVAC) over a decade ago and since becoming the industry standard, have shown a deterioration for some mainstream types in the latest October 31st 2014 and 47th edition of The Aircraft Value Reference. The latest update to The Aircraft Value…

By: Aircraft Value News

November 17, 2014

AVN

B777-200ER Market Values Remain Under Pressure

Despite the limited level of availability and only a handful being scrapped market values of the -200ER remain under pressure such the next three years is expected to see a drop of more than 30 percent. The -200ER is no longer the desirable asset that it once was. Values are…

By: Aircraft Value News

November 17, 2014

AVN

Aircraft Asset Assessment: A340-500

Market Presence. The A340-500 offered much when proposed. The four engines offered reliability and safety. The interior flexibility provided opportunities for operators and passengers. The aircraft fulfilled a much needed role in the market, providing an alternative to the B747 as well as allowing existing A340-300 operators an upgrade path.…

By: Aircraft Value News

November 17, 2014

AVN