Aircraft Value News [October 31, 2016] -

Issue: October 31, 2016

CSeries Pricing Under Scrutiny As Another $1 Billion Funding Sought

The pricing being offered to customers continues to be under scrutiny as Embraer reportedly considers making a complaint to the World Trade Organization (WTO) regarding the effect of investment from regional and federal entities. Embraer are concerned that a $1 billion investment made by the Quebec administration allowed Bombardier to…

By: Aircraft Value News

October 31, 2016

AVN

New RJs Cause Incumbent Types to Fall

With the introduction of new types such as the E2s and the MRJs, values of existing regional jets are beginning to feel the weight of transition. While the values of current generation regional jets are falling, this is in line with expectations and reflects previous stability. Embraer, Bombardier and MRJ…

By: Aircraft Value News

October 31, 2016

AVN

Some Freighters Remain in Demand

The market for freighters remains fragile at best though there are some types – notably the narrowbodies – that remain in demand. Momentum is building for the conversion of the B737-800 and with lessors having a large number of older examples at low capital cost this means of onward disposal…

By: Aircraft Value News

October 31, 2016

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Capacity of B777-300 Fails to Halt Fall in Values

The -300 has considerable capacity but lacks the range of the -300ER and as such values are continuing to fall. The operator base has always been limited with only 60 ever having been built. A -300 has recently been lost as a result of a crash at Dubai and a…

By: Aircraft Value News

October 31, 2016

AVN

Aircraft Asset Assessment

Market Presence. The -300 has been in service for 18 years and as such it is little wonder that the first unit has been scrapped. The limited range of the -300, at least with respect to the capability of most other current widebodies, makes it suited to the needs of…

By: Aircraft Value News

October 31, 2016

AVN

Another Gulfstream Product Ends Production – The G450

Production of the G450 is to cease by 2018 in favor of the all new G500 with pricing of the former having all but collapsed in the last few years. The G450 has been a success in terms of production to date with more than 350 in service since first…

By: Aircraft Value News

October 31, 2016

AVN

B737-400SF Values Buck Downward Trend

Market for Freighter Remains Strong Despite -800F Momentum While demand for widebody airfreight capacity is only just stepping back from the abyss, the increase appetite for regional and localized airfreight operations has seen sufficiently consistent demand for the -400SF as to allow values to rise over the course of the…

By: Aircraft Value News

October 31, 2016

AVN

Apollo Cites Difficulties In Acquring B777-200ERs for Onward Lease

The liquidity – or apparent lack of it - of the B777-200ER and -300 market continues to make it difficult for the lessors to participate, particularly in terms of acquiring aircraft for onward lease thereby impacting values according to Apollo Aviation. Apollo Aviation has been seeking to become more involved…

By: Aircraft Value News

October 31, 2016

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A320neo and B737MAX Still Warrant Premium Despite Fall in Fuel Price

The premium attributed to the A320neo and B737MAX over existing products continues to remain valid even if the amount has declined slightly. There has been considerable speculation that due to the fall in the price of fuel then both lease rentals and values warrant a lesser premium over existing products.…

By: Aircraft Value News

October 31, 2016

AVN

A380 Values Face Tough Time

The values of used A380s are experiencing difficult times partly as a result of the SIA decision to hand back a very early example to its lessor but also as a result of the cutback in production and limited advancement of the orderbook. The decision by SIA to handback serial…

By: Aircraft Value News

October 31, 2016

AVN