Aircraft Value News [March 23, 2015] -

Issue: March 23, 2015

Values Remain Large Stable Aided by Fuel Price

The lower price of fuel is providing a measure of breathing space for used narrowbodies. The values of used aircraft have been under pressure as a result of the drive towards newer aircraft that offer greater efficiency. Now that the differential in operating costs is being narrowed there is lesser…

By: Aircraft Value News

March 23, 2015

AVN

Turboprop Rentals Remain Stable

Lease rates for turboprops may be at their peak but this developed into a plateau rather than a cycle. The lease rentals being secured are not stable but are generating considerable profits for the lessors who have been able and willing to plunder this hitherto ignored segment of the market…

By: Aircraft Value News

March 23, 2015

AVN

B777-300ER “Enhanced” Set to Become New Baseline for Values

The launch of an “Enhanced” B777-300ER, due for service entry in the third quarter of 2016, offers as much as a five percent improvement in seat mile costs but raises the issue of whether the changes warrant a premium or a discount to the existing specification. The changes being made…

By: Aircraft Value News

March 23, 2015

AVN

Aircraft Asset Assessment: A318

Market Presence. The high gross weight A318s are a match for the B737-600, something that was lacking with the original payload/range objectives. However, a 100 seater usually flies shorter sectors such that flight times are likely to approximate an hour. The difference in MTOWs has a significant effect on range…

By: Aircraft Value News

March 23, 2015

AVN

Values Of A318 Achieve Measure of Stability

While availability of A318s is virtually non existent this is not preventing values of the type from remaining weak. The type has long since seen the last delivery and while the aircraft may still be offered as a corporate aircraft, there is limited interest in a commercial role. Even the…

By: Aircraft Value News

March 23, 2015

AVN

Rise in Production Rates Raises Note of Caution

The continual rise in production rates announced by the two principal protagonists, Airbus and Boeing, is beginning to raise questions among the financing community as to sustainability and over-ordering. Airbus has recently announced that as of 2017, production rates for the A320 family will rise to 50 per month. A…

By: Aircraft Value News

March 23, 2015

AVN

March 2015 American EETC Sees Sometimes Disparate Values

The American Airlines EETC covering 28 aircraft again saw a variation in base values between appraisers of some aircraft but generally remained within range of current market values. The 28 aircraft comprised “(a) eight Airbus A319-112 aircraft delivered new to American from July 2013 to February 2015, (b) five Boeing…

By: Aircraft Value News

March 23, 2015

AVN

Regulators Demand More Rigor from Appraisers

Bank regulators, particularly in Europe, are increasingly demanding more rigor from appraisers as they seek accurate asset values and more conservative loan to value ratios. The fallout from the financial crisis of nearly a decade ago continues to reverberate around banking regulators. The regulatory authorities are continually seeking a more…

By: Aircraft Value News

March 23, 2015

AVN