Aircraft Value News [June 19, 2023] -

Issue: June 19, 2023

BRICS Expansion May Force Dual Currency Residuals

New Currency Could Restrict Trading The recent Cape Town statement brings closer the prospect of another trading currency to provide an alternative to that of the U.S. dollar which could create issues for residual value calculations should financing of aircraft use the new currency. The BRIC summit held in South…

By: Aircraft Value News

June 19, 2023

AVN

Auction of SAS A350-900 Likely to See Variation in Bids

An auction of aircraft – at least a modern large commercial aircraft – is something of a rarity but can occur for several reasons and in view of the current market conditions, the seller of an A350-900 can expect a good price. The auction of an aircraft usually coincides at…

By: Aircraft Value News

June 19, 2023

AVN

Embraer E-Jet Values Show Improvement

Production of the E2 has seen a notable dip in the last six years. In 2017 a total of 101 E-Jets were delivered but this included deliveries for the large number of E175E1s that were being ordered. In 2018 the number of E-Jets deliveries had fallen to 90, then 89…

By: Aircraft Value News

June 19, 2023

AVN

Maintenance Costs & EOL Payments Still Rising Due to Bottlenecks

The inflationary effects on the maintenance, repair, overhaul (MRO) business as a consequence of the Russian invasion of Ukraine and the supply chain issues resulting from the Covid Event are inevitably seeing operators paying more, both in terms of hourly maintenance reserves and End of Lease compensation payments. During 2021,…

By: Aircraft Value News

June 19, 2023

AVN

Limited Production Rates Continue to See Demand for Used Widebodies

The international passenger market continues to see a surge in traffic emanating from pent-up demand and this has seen a number of used widebodies being acquired. The demand for used aircraft emanates from the inevitable lag between demand and the inability of the manufacturers to increase production rates in the…

By: Aircraft Value News

June 19, 2023

AVN

Regional Jets Benefit from Operator Expansion

Lease rates courtesy of The Aircraft Value Analysis Company Limited (AVAC). Commentary as of June 2023 compared with March 2023. www.aircraftvalues.net; www.aircraftvalues.com. Aircraft Age Rentals Trend Analysis Avro RJ85 1993-1997 1997-2001 25-40 30-50 The market for the RJ85 has long since dissipated and lease rentals have barely moved, even…

By: Aircraft Value News

June 19, 2023

AVN

B737-400 Values Keep Falling

With the freighter conversion market for the -400 having all but ended, then there is even less appetite for the passenger version. The B737-400 achieved a measure of success through the 1990s more as a consequence of association with the much more popular B737-300, offering operators more capacity at the…

By: Aircraft Value News

June 19, 2023

AVN

Aircraft Asset Assessment — The B737-400

Market Presence. The B737-400 is clearly showing its age in terms of efficiency, specification and market orientation even more so in the context of the Covid Event. Structure and systems can be traced back to the 1960s while performance and capacity reflect the 1980s. However, partly perhaps because of its…

By: Aircraft Value News

June 19, 2023

AVN

Narrowbody Recovery Trend Continues

The recovery in narrowbody values continues for both in production models and mid-life A320ceo and B737-800 examples. The most notable effect of the recovery on A320ceo and B737-800 values is to see a rise and then a flattening. Assuming a stable market environment, values exhibit a 9-11 percent per annum…

By: Aircraft Value News

June 19, 2023

AVN