Aircraft Value News [May 18, 2015] -

Issue: May 18, 2015

Values Continue to Ease Back

Orders for widebodies continue to be placed in numbers but the demand for older aircraft and the transition to newer types is leaving some types exposed such that values are facing a measure of weakness. Values and Ratings courtesy of The Aircraft Value Analysis Company www.aircraftvalues.net, www.aircraftvalues.com. The Aircraft Value…

By: Paul Leighton

May 18, 2015

AVN

B747-400 Values Face Severe Downward Pressure

The values of the B747-400 continue to decline to virtually scrap levels as operators divest themselves of the type in favor of newer and more efficient types. Ever since production of the passenger B747-400 ended in 2005 values of the type have been under scrutiny and have exhibited a significant…

By: Paul Leighton

May 18, 2015

AVN

ATR72-600 Values Remain Stable As Larger Variant Fades

The values of the ATR72-600 are expected to remain at current levels as discussions concerning a larger variant continue fade. Just as the jet manufacturers are seeking to increase capacity of existing equipment by offering slimline seats and different lavatory and galley configurations, ATR is similarly seeking to increase capacity…

By: Paul Leighton

May 18, 2015

AVN

Asking Prices for Airbus Aircraft Remain Realistic

While there continues to be some “enthusiastic” pricing with respect to the sale and leaseback transactions – approximately $300 million for example for a new A380 – at the other end of the spectrum, the price of older used aircraft remains more realistic. A 1989 A300-600R is being advertised for…

By: Paul Leighton

May 18, 2015

AVN

CFM Leap-1B Engine Testing Begins As Market Waits for Validation

The commencement of CFM LEAP-1B testing represents an important milestone as customers, operators, lessors and investors await verification that the smaller fan size required for the -1B can produce the necessary fuel efficiency benefits to effectively compete with the A32neo family. The LEAP-1B has been installed on the B747-100 flying…

By: Paul Leighton

May 18, 2015

AVN

Lease Rentals Stable Despite Backlog

Based on strong traffic growth and a record backlog lease rentals should be rising but competition among lessors is still sufficiently strong as to keep lease rentals stable. The competition from newer lessors eager to secure market share as quickly as possible are allowing the less financially secure lessees to…

By: Paul Leighton

May 18, 2015

AVN

Values of B787-9 Continue to Improve

In sharp contrast to the fanfare that accompanied the rolling out of the B787-8, which then featured interminable delays, the development of the -9 and its service entry has been much more muted with good in-service performance underlining stronger values and obviating the need for high profile publicity. The airlines,…

By: Paul Leighton

May 18, 2015

AVN

Aircraft Leasing Remains Strong Though Popularity Carries Risks - Fitch

The aircraft leasing sector is continuing to experience strong growth as a result of the improvement in airline performance, aided by low fuel prices, as well as favorable credit markets and attractive lease rates and margins according to a report by Fitch Ratings. The aircraft financing sector is expected to…

By: Paul Leighton

May 18, 2015

AVN