Aircraft Value News [October 16, 2017] -

Issue: October 16, 2017

B777-9 Values Need to be Realistic

Long Term Residuals of Large Widebodies can be Weaker than Average With the first B777-9 due to be delivered in just over two years’ time, attention is now turning to current and future values of the type but the behavior of previous and existing large widebodies suggests that a measure…

By: Aircraft Value News

October 16, 2017

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Asking Prices Reflect Strength of the Market

The market remains strong – though not strong enough to prevent the demise of Air Berlin and Monarch Airlines – and the asking prices for aircraft continue to reflect that demand even if the final sale price is likely to be much lower. A 1997 A340-300 with 46,000 hours, is…

By: Aircraft Value News

October 16, 2017

AVN

American Airlines EETC 2017-2 Sees Consistency Among Appraisers

The 23 aircraft comprising the American 2017-2 EETC transaction showed reasonable consistency among the three appraisers although the annual decline in future values again was relatively optimistic. The ISTAT European conference held in Edinburgh in late September highlighted the use of the same appraisers for the EETC and ABS transactions…

By: Aircraft Value News

October 16, 2017

AVN

B787-8 Rentals Continue to Dip

The lease rentals of the B787-8 continue to move downwards such that they are becoming ever more affordable to second tier carriers should they be released. The B787-8 has been in service for approximately seven years and it is little wonder that lease rentals should have featured a significant decline.…

By: Aircraft Value News

October 16, 2017

AVN

CSeries Tariff Sets Scene for Future Sino-Russian Offerings

The some 300 percent tariff being imposed on the CSeries represents a major blow for Bombardier, if confirmed, but by pursuing such a policy Boeing is more likely seeking to set a precedent to protect its domestic market from offerings China and Russia in future years. The 220 plus 80…

By: Aircraft Value News

October 16, 2017

AVN

Freighter Lease Rentals Remain Stable

The five and ten year average airfreight rates as published by IATA amount to 4.4 percent and 3.2 percent respectively but traffic for August 2017 compared to August 2016 showed a 12.1 percent increase. The growth in airfreight has been sustained for some months now with capacity still lagging behind.…

By: Aircraft Value News

October 16, 2017

AVN

Competition Prevents Rise in Rentals

The demand for aircraft – particularly the newer examples – remains strong and this allowing values to generally fall at a rate below the general trend. The demise of a few carriers such as Monarch and Air Berlin has resulted in a few aircraft expectantly entering the market. Some of…

By: Aircraft Value News

October 16, 2017

AVN

B777F Values Continue to Fall

The delivery of the B777F continues apace but Boeing continues to be anxious to sell more in the run up to the arrival of the B777-9. The pricing of new B777Fs is likely to have become more competitive and this is having an impact on used values even as the…

By: Aircraft Value News

October 16, 2017

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Aircraft Asset Assessment-The B777F

Market Presence. The market for the B777F is not only well established through the operation of the B747s, MD11Fs, B767Fs and A300-600Fs but will also likely experience expansion as a consequence of the improvement in payload/range and through twin engined efficiency. The age profile of earlier widebodies such as the…

By: Aircraft Value News

October 16, 2017

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Honeywell Business Jet Forecast Continues to Show Weakness in New Deliveries

The annual Honeywell forecast for the business jet market continues to show relative weakness in the market for the next ten years but this will aid the used market and therefore prices. While a failure to see an improvement in delivery rates may seem to suggest overall weakness, some of…

By: Aircraft Value News

October 16, 2017

AVN