Aircraft Value News [December 11, 2017] -

Issue: December 11, 2017

Challenger 650 Prices Fall “30 Percent” Within Two Years

The prices attributed to the Bombardier Challenger 650 are failing to reflect the stability that are other larger business jets are enjoying. The cost of a new Challenger 650 is approximately $33 million but a two year old example is likely to have a price of less than $20 million…

By: Aircraft Value News

December 11, 2017

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Widebody Lease Rentals Weaker Than Expected

With traffic still being above the long term trend and a strong backlog for most widebodies, lease rentals would also be expected to be high but such is the availability from lessors and retention of older widebodies due to lower fuel prices, that rentals are relatively low. Secondary leasing of…

By: Aircraft Value News

December 11, 2017

AVN

Regional Jet Values Continue to Fall

The values of the regional jets are facing issues in terms of lack of investment and the transition to new types. The CRJ product line is ending the line with a major investment needed to essentially replace the aircraft. Sales will continue for the CRJ but largely the basis of…

By: Aircraft Value News

December 11, 2017

AVN

A340-500 Values Still Falling

The values of the A340-500 have continued to fall even as the price of fuel remains manageable. The attempts to boost values and lease rentals of the A340-500 and -600 have not been successful although the rate of decline is less notable recently than in previous year. While there was…

By: Aircraft Value News

December 11, 2017

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Aircraft Asset Assessment

Market Presence. The A340-500 offered much when proposed but the mistake lay in maintaining a flawed philosophy. The four engines seemingly provided reliability and safety but it was already evident that two engines would also provide efficiency and safety. The A340-500 may have been the cheaper option to develop but…

By: Aircraft Value News

December 11, 2017

AVN

Aircraft Liquidity Still Fails Widebodies

The liquidity of aircraft represents a significant factor in determining the values of existing types but can also illustrate the potential for types currently held in high regard. There are few types that have the highest rating in the period 2011-2017. The liquidity seeks to reflect how easy it is…

By: Aircraft Value News

December 11, 2017

AVN

Effect of Possible A380 Production Cessation Started to be Assessed

Pressure Mounts For New Order Announcements There has a clear expectation, partly based on emanations from Airbus itself, that there would be further A380 order announcements during the course of 2017 and, even though there still exists such a possibility rather than a probability, such absence is increasingly making it…

By: Aircraft Value News

December 11, 2017

AVN

B757 Rentals Show Little Decline in Recent Years

The B757 has been in service for some 35 years and has been a stalwart for the leasing community providing good returns for decades and while advancing age and replacements are taking their toll, lease rentals seem to be holding steady. Even though the leasing community initially preferred to focus…

By: Aircraft Value News

December 11, 2017

AVN

WAVE 2017-1 Portfolio Sees Mid Life Aircraft Values

The raft of aircraft securitizations continues but some involve the acquisition of aircraft from other parties rather than a block of aircraft from the same airline or lessor and the WAVE 2017-1 involves 19 used aircraft of various types. Wings Capital Partners LLC, together with certain affiliates, is the seller…

By: Aircraft Value News

December 11, 2017

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Two B747-400ERFs Bought at Auction for $49 million

The two B747-400ERFs previously operated by defunct Jade Cargo International have been bought for a total of approximately $49 million (322.8 million yuan) during an auction which saw a large number of bidders. The auction was hosted by Alibaba’s Taobao e- shopping site and represented one of the largest aircraft…

By: Aircraft Value News

December 11, 2017

AVN