FOR CURRENT &
FUTURE AIRCRAFT VALUES
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Freighter Conversions Gain Momentum
Widebody Conversions Gain Traction But Pricing Needs to be Competitive The significant reduction in the value of passenger aircraft and the current resilience of the freighter market makes for greater interest in freighter conversions but with the world economy facing recession a sense of realism is needed to manage expectations.…

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May 25, 2020
AVN
B737-700 & A319 Values Suffer Despite Apparent Need for Smaller Aircraft
The values of the B737-700 and A319 would seem to warrant lesser discounting due to the perception that smaller aircraft will be required in the future and this has some validity except that with Delta imposing a maximum 60 percent load factor on all flights, smaller is not necessarily better.…

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May 25, 2020
AVN
Long Term Residuals See Some Gains As Manufacturers Delay New Programs
The calculation of long-term residual values inevitably encompasses an assessment of future demand in the context of product life cycles and the arrival of new products, but the Covid event sees a delay to developments that will benefit existing types. The manufacturers have already introduced significant reductions to production rates…

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May 25, 2020
AVN
Effect of Taint Magnified in Weak Market Conditions
The repair of severely damaged aircraft becomes less likely during weak market conditions while values of those already impacted by “taint” will see a further reduction. The appraisal of individual aircraft requires the assessment of the history of the aircraft. Inevitably, some aircraft suffer damage during their working lives, and…

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May 25, 2020
AVN
Capital Adequacy Need to Use Market not Base Values
The current severely depressed market conditions are increasingly needing to see financial institutions take account of the fall in the value of their assets. To date, there may have been a reluctance to introduce any changes to market values perhaps because of the absence of transactions. There will likely be…

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May 25, 2020
AVN
Dedicated Freighter Values Hold Steady
The demand for airfreight means that the mass parking of the passenger fleet, lays the responsibility for carriage to the dedicated freighters. The passenger aircraft usually accommodate some 50 percent of the worlds airfreight. Even with lesser economic activity this still means that the freighters are in short supply. Freighter…

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May 25, 2020
AVN