Economic Contagion Precipitates Tipping Point for Values
Sharp Drop in Global Traffic Points to Fleet Contractions Forcing Down Values The tipping point for values has passed as the worldwide economic downturn translates into depressed demand for travel in all sectors. Values of virtually all aircraft are experiencing significant falls as operators seek to cope... [read more]
Asking Prices Continue to Show Enthusiasm
Despite the problems of the market, aircraft are still being traded including older types which would seem to hold lesser attraction. A 1987 B767-300 with a total time of 63,000 hours is being offered at a price of $9.5 million. This appears to be a reasonable figure in view of the engines being recently...
Early B787 Values Face Downward Pressures
The market for the B787 in the short term is increasingly less attractive as performance issues and delays take their toll. The values of the B787 had been enjoying a premium over the last year even with the delays. However, with fuel prices having wiped out some of the operating advantage offered by the new...
Rentals Experience Significant Fall
Lease rentals of more modern narrowbodies have fallen by more than 20 percent compared to their peak in late 2007, with the expectation that further falls are likely. The market has passed the tipping point which occurred in early February 2009. While there continues to be activity, the contraction of fleets...
Older Widebody Values Will Not Recover
The fortunes of the older widebodies are at rock bottom even if the price of fuel remains consistently low. Older widebodies may have the advantage of low capital cost but they also have the ability to drain resources and threaten reliability. The three person cockpits, the D checks, engine overhauls and...
MD83 Values Hit the Buffers
The values of the MD83 have continued to decline as the type faces the inevitable consequences of parking en masse and the move to newer equipment. Despite still being the most desirable of MD80 variants, the fortunes of the MD83 have experienced sustained adversity. While during the recent period of growth...
Aircraft Asset Assessment
The MD83 Market Presence. The MD83 experienced its heyday in the late 1980s and early 1990s. While values started to stumble more than ten years ago, availability only became a major issue in recent years. Even before production ceased in 1999, the MD83 was already facing severe pressure from the A320 and...
Harsher Market May Accelerate Not Delay Narrowbody Replacement
The impetus for a replacement of the A320 and B737NG families is constantly shifting as manufacturers and operators grapple with rapidly changing market conditions but the downturn has the potential to accelerate rather than retard the replacement process, thereby undermining residual value expectations of...
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