Aircraft Value News [August 24, 2015] -

Issue: August 24, 2015

Lease Rentals Holding Steady As Lessors Report Double Digit Income

The progression towards the majority of the world’s jet fleet being leased continues buoyed by extremely good returns from many lessors. The second quarter results posted by a myriad of major lessors continues to demonstrate why leasing is so attractive for those seeking high returns. The ability of lessors to…

By: Paul Leighton

August 24, 2015

AVN

US $1.50 per gallon Fuel Price Continues to Bolster Net Pricing of New Aircraft

The price of fuel continues to remain at low levels amid growing supply and falling demand but even the low price of fuel has not helped some airlines, both large and small, registering significant losses, resulting in fleet contractions and new aircraft acting as replacement rather than growth capacity. As…

By: Aircraft Value News

August 24, 2015

AVN

Values Continue to Fall for Most Widebodies

Apart from the B787 and A350 values of nearly all widebodies have fallen as the market continues to prefer newer aircraft types. Values and Ratings courtesy of The Aircraft Value Analysis Company www.aircraftvalues.net, www.aircraftvalues.com. The Aircraft Value Analysis Rating (AVAR) reflects the considered suitability for asset based financing over a…

By: Paul Leighton

August 24, 2015

AVN

Delta B737-900ER EETC Sees Modest Variation in Base Values

Delta in issuing Enhanced Equipment Trust Certificates (EETCs) for 15 B737-900ERs secured base value appraisals from three appraisers showed a ten percent variance between the highest and lowest being on average slightly higher than market values. The 15 aircraft comprised B737-900ERs delivered in late 2013 and early 2014. The aircraft…

By: Paul Leighton

August 24, 2015

AVN

Risk of Interest Rate Rise Falls as China Devalues

With falling unemployment in some countries and the need to wean the market off historically low interest rates, there has been mounting pressure for an increase but with the devaluation of th Yuan by China there will be a reluctance to further strengthen exchange rates. The lesser need to increase…

By: Paul Leighton

August 24, 2015

AVN

B787-8 Secures Credibility

While the initial premium for the first off the line has evaporated, those units delivered thereafter are gaining from the much improved reliability and production enhancements such that values are rising for new aircraft. As expected the delay to the service entry of the type combined with specification differences has…

By: Paul Leighton

August 24, 2015

AVN

Aircraft Asset Assessment

Market Presence. While Boeing sought to capitalize on the delays to the A380 they ignored their own problems with respect to the B787 and then the B747-8. Public relations, customer perceptions and most of all finances have been adversely affected by the difficulties. The first 65 aircraft require some degree…

By: Paul Leighton

August 24, 2015

AVN

Engine Values Hold Reasonably Firm

There is a generally held perception that engines hold their value much better than the airframes that they power and though values of the older generation engines are suffering, the values of mid-life engines are indeed remaining reasonably stable. Though engines do hold their value through to their mid-life, they…

By: Paul Leighton

August 24, 2015

AVN

Values Decline as Number of B767-300ERs in Storage Rises

Despite the lower price of fuel which should favor used aircraft the fortunes of the B767-300ER continue to deteriorate with both values and lease rates continuing to fall as the number of examples in storage increases to represent an excess. There have been 583 B767-300ER orders since 1988, all of…

By: Paul Leighton

August 24, 2015

AVN