Aircraft Value News [April 30, 2018] -

Issue: April 30, 2018

Widebody Market Continues to Cause Problems for Owners

Residuals of Aging Widebody Aircraft Fail to Live Up to Expectations Medium to long term residual values of widebodies have nearly always failed to match forecasts and even those held in high regard today will likely suffer the same fate as widebodies face different challenges from narrowbodies. The greater volatility…

By: Aircraft Value News

April 30, 2018

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….. A380, B777-200ER, B777-300ER and B787-8 Exposed

If past widebody experience is any indicator, then values of some of todays widebodies may experience similar significant declines. The B777-200ER has already been experiencing considerable problems in the last few years. As production slows and ends, the problems in remarketing used examples has become ever clearer. While some operators…

By: Aircraft Value News

April 30, 2018

AVN

Values of Specific Airframe/Engine Combination Raised Again

Any differential in values of specific airframe/engine combinations have gradually been eroded over the last decade but there is increasingly a question mark over some airframe/engine combinations as to whether they should be discounted. The convergence in values of various airframe/engine combinations in recent years has been due to increasingly…

By: Aircraft Value News

April 30, 2018

AVN

Service Entry of Bombardier Global 7000 Likely to Values of Used Aircraft

The service entry of new offerings from both Bombardier and Gulfstream will do little to sustain the recent stability of large dedicated business jets. After suffering significant falls in 2015 and 2016, the values of the larger business jets such as the G650 and Bombardier Global 6000 have more recently…

By: Aircraft Value News

April 30, 2018

AVN

Freighter Lease Rentals Still on Upward Path

The demand for airfreight continues to increase and this represents an improving picture for the frieghters with lease rates stable or actually rising. This increase in traffic has already seen a number of aircraft being taken out of storage and returned to service. The production B747-400F, with its nose loading…

By: Aircraft Value News

April 30, 2018

AVN

Market Favors New Aircraft As Fuel Rises

The market for the narrowbodies remains strong at least for the newer aircraft types largely because of the sustained above trend passenger growth. IATA reported a 7.6 percent growth in passenger traffic in February although IATA does not represent all airlines. This compares with the average of approximately 5.5 percent…

By: Aircraft Value News

April 30, 2018

AVN

Values & Rentals Face DC10-10 Fate

The B767-400 is a niche aircraft having never produced the type of demand envisaged by Boeing essentially filling a gap for a few customers. The B767-400 was only ever ordered by Delta and United although one was also delivered to BBJ and is currently operated by the Bahrain Government. With…

By: Aircraft Value News

April 30, 2018

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Aircraft Asset Assessment

Market Presence. The B767-400 was not a success for Boeing and indeed the aircraft has become marginalized. With only two operators the aircraft is likely to remain with existing operators for some years to come. The values of the -400 have not performed well though they are largely theoretical given…

By: Aircraft Value News

April 30, 2018

AVN

Above CPI Inflation Sees Need for Ever Higher Maintenance Reserves

The engine manufacturers continue to increase spares pricing while the cost of engine overhauls is also increasing although as engine support packages take on ever greater significance, traditional standalone maintenance is losing some of its relevance. Engine support programs can sometimes cost more than the hourly derived cost of performing…

By: Aircraft Value News

April 30, 2018

AVN