Aircraft Value News [May 2, 2016] -

Issue: May 2, 2016

Rentals Continue to Slip for Older Widebodies

The lease rentals of the older widebodies continue to fall not lease as a means of placing the type in a market that is continuing to be dominated by the delivery of new examples. Sale and leaseback transactions, which constitute an increasingly large proportion of new aircraft deliveries, continue to…

By: Aircraft Value News

May 2, 2016

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B737-600 Values Fail to Impress

In failing to capitalize on the existing fleets of the B737-500 and B737-200ADV, the -600 has demonstrated how quickly the market structure can change. More than ten percent of the fleet has already been scrapped and more are scheduled to go the same way. This contrasts with a market upon…

By: Aircraft Value News

May 2, 2016

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CSeries Pricing Becomes More Competitive After Bail Out

The bailout of Bombardier by the Quebec Government offers the potential for more competitive pricing though such is the scale of the development costs to date that there still exists insufficient margin to compete with the other manufacturers on the more attractive orders, as evidenced by the recent order for…

By: Aircraft Value News

May 2, 2016

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G650ER Bucks Trend as Pricing Still Comparable to Purchase Price

The pricing of the Gulfstream G650ER continues to be at odds with the more usual discounting of the heavy jets. The G650 was introduced into service in 2012 followed by the G650ER in 2013. The new price of the G650/G650ER amounts to approximately $65 million and therefore represents one of…

By: Aircraft Value News

May 2, 2016

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United Airlines Buys B737-700s for “$20-25 million”

“Stratregic Pricing” Still Evident Despite Record Backlog The order for 25 B737-700s by United Airlines has reportedly been placed on the basis of a sizeable and significant discount equating to a purchase price of between $20-25 million. The 2015 list price of the B737-700 amounts to $80.6 million and the…

By: Aircraft Value News

May 2, 2016

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New Narrowbody Pricing Under Scrutiny

Despite the record backlog of narrowbodies, there is speculation that manufacturers may be engaging in discounting as a means of stimulating orders and retaining market share. The current market value of a new A320ceo is approximately $43 million while that of a new B737-800 is $47 million. There is some…

By: Aircraft Value News

May 2, 2016

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Pressure Mounts for “B737MAX10” to Effectively Compete with A321

The demand for the A321neo is exceptional and this is leading to a concern that Boeing may need to offer a product that goes beyond the current B737MAX9. The orders for the A321neo continue to mount while any improvement for the B737MAX9 is perhaps being advanced through aggressive sales campaigns.…

By: Aircraft Value News

May 2, 2016

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Used Values Fall Despite Backlog

Even with Airbus having to halve production of the A320neo for the next few months due to the problems being experienced with the new Pratt & Whitney engine, values of newer narrowbodies continue to fall in line with expectations. The overall market for narrowbodies remains strong with the backlog continuing…

By: Aircraft Value News

May 2, 2016

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