Aircraft Value News [August 10, 2015] -

Issue: August 10, 2015

A310-300 Values Continue to Show Weakness

The values of the A310 are facing continued weakness as the type is increasingly displaced by newer types. The A310 along with the B767-200 remains the smallest of widebodies though Boeing may seek options for a replacement for the B757 which may feature twin aisles. In the interim the aircraft…

By: Paul Leighton

August 10, 2015

AVN

B777-200ER Values Continue to Weaken

The values of the B777-200ER are continuing to face downward pressure as a result the arrival of newer types and ageing. The market for the B777-200ER has been deteriorating in the last few years with no new orders, an empty backlog and an age profile that encourages replacement. Having entered…

By: Paul Leighton

August 10, 2015

AVN

Lessors Aware of Widebody Transition Cost

With major airlines increasingly seeking to divest themselves of the residual value risk while improving their balance sheets, the proportion of leased widebodies continues to climb, a trend that will see lessors having to become much more familiar with the problems – and costs - of transitioning such aircraft. Transitioning…

By: Paul Leighton

August 10, 2015

AVN

BFE Component of New Aircraft Becomes of Greater Significance for Investors

The cost of the Buyer Furnished Equipment (BFE) is becoming of greater significance for investors as they seek to ensure that the cost of the interior has indeed some relevance when seeking to transition to other operators in the years to come. The BFE component of narrowbodies is relatively standard…

By: Paul Leighton

August 10, 2015

AVN

Freighter Values Stable Despite China Problems

With China industrial output continuing to waiver there is inevitably likely to be some impact on airfreight but other sources of demand in other regions are keeping demand static. IATA reports that airfreight is climbing though only slowly. Load factors for May 2015 were lower than in May 2014 with…

By: Paul Leighton

August 10, 2015

AVN

Restrictive Scope Clauses Continue to Limit Market

The issue of Scope Clauses has been a long standing issue in the US and continues to exert its influence though not necessarily to the advantage of the consumer - or airline. The relaxation of scope clauses has been an ongoing process but the thwarted acquisition of 20 used E190s…

By: Paul Leighton

August 10, 2015

AVN

Aircraft Asset Assessment: A310-300

Market Presence. The A310-300 at least features a two-person cockpit though it lacks the sophistication of the later Airbus product range. The powerplants remained reasonably competitive until recently but the interior continues to offer marketing opportunities for large and small operators. Operational flexibility of the A310-300 varies considerably depending on…

By: Aircraft Value News

August 10, 2015

AVN

Lease Rentals Face Conflicting Pressures

For the last few months lease rentals have been reasonably stable but with the prospect of a rise in interest rates perhaps by year end there exists the possibility of a rise though the expansion of some lessors is serving to contain any improvement as is the transition to new…

By: Paul Leighton

August 10, 2015

AVN