Widebody Rentals Still On The Up

The market conditions of today are increasingly reminiscent of the late 1980s. Lease rentals of used widebody equipment experienced a surge in the late 1980s as Boeing and McDonnell Douglas struggled to introduce the MD11 and B747-400s on schedule and in sufficient quantity to meet the needs of customers. Lease rentals of the DC10-30 and the B747- 200B increased. However, with the downturn resulting from the first Gulf War the lease rentals of such type as the DC10-30 suffered significant falls. The market for the B767- 300ER as well as the B747-400 continues to improve and lease rentals are rising as a result. Both types will be subject to replacement in the coming years suggesting that lease rentals may suffer a material fall, which will be amplified should an economic downturn occur at the same time.