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Rentals of Older Narrowbodies Stabilize

August 21, 2006

The lease rates of narrowbodies no longer in production have stabilized due to the continued focus on newer aircraft types. The market for aircraft in general has nearly reached its peak and with the increased focus on newer aircraft, older types are losing some of their attraction. In common with previous growth periods, rentals of aircraft no longer in production have rarely risen on their own merits, but as a consequence of the lack of availability of newer types. While the production rates of the manufacturers have not risen sufficiently to meet demand, the commencement of fleet replacement programs and the increased focus on yields and load factors, rather than on frequency and market share, has increasingly prompted the sidelining of older types.

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