Depressed Conversion Market Makes for Tough Call on Converted Values

May 19, 2003

When determining the cost of a converted freighter, the simple, if sometimes flawed, methodology of adding the value of the passenger aircraft to the conversion cost is being further undermined as more discounts are offered as inducements to potential customers.

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Mission / Aircraft Values News was created in 1992 to provide independent and informed advice regarding current and future aircraft values, and the factors that affect them, to the air transport community.AVN's core activity is the provision of expert commentary on current and future market values and lease rates. AVN seeks to interpret and analyze current events, enabling readers to more accurately anticipate future market trends. AVN expertise centers on an appreciation that aircraft are a commodity, subject to vagaries of supply and demand. AVN's subscribers comprise decision makers at financial i aft lessors and airlines.