Aircraft Value News [October 29, 2018] -

Issue: October 29, 2018

Lease Rates Increase for Less Financially Secure Lessees

Fragility of Some Lessees Seeing Premature Return of Aircraft A raft of airline failures – both large and small – in recent years is leading to lessors placing a premium on rentals of aircraft to less financially secure operators. Part of the success of the operating lease industry over the…

By: Aircraft Value News

October 29, 2018

AVN

A350-900ULR Values Will Not Suffer Same Fate as A340-500

The re-launch of the direct Singapore-Newark route by Singapore Airlines using the new A350-900ULR variant will fortunately not likely see the same fate for residual values of the A340-500 or even B777-200LR. Singapore-Newark route, a distance of nearly 8,235 nautical miles, takes some 19 hours but was last flown by…

By: Aircraft Value News

October 29, 2018

AVN

Maintenance Reserves Need to Account for Realistic D Check Costs

Maintenance reserves charged by lessors on both narrowbody and widebody aircraft need to be adequately reflect the real cost of such major maintenance. While the cost of performing the major airframe maintenance on aircraft pales against the costs associated with overhauling the engines and replacing their LLPs, the cost of…

By: Aircraft Value News

October 29, 2018

AVN

Two Early Build B737-900ERs Sold Between Lessors

Establishing values of the B737-900ER is likely to be difficult as there are relatively few operators and in view of the predilection for lessors to sell encumbered aircraft between themselves. The operator base of the B737-900ER is not as liquid as it is for many other aircraft types and this…

By: Aircraft Value News

October 29, 2018

AVN

Widebody Rentals Still Weaker Than Expected

With above trend traffic growth widebody lease rentals should be strong but instead they appear to be weakening. Naturally the replacement cycle is in full swing with the arrival of the B787-9 and A350 in numbers. The B777-9 is ever closer to service entry and the A330neo has just arrived.…

By: Aircraft Value News

October 29, 2018

AVN

Values of Outgoing E-Jets Under Pressure

The market for the E190 is likely to prove more difficult in the coming years as it appears that a number will be coming onto the market. On behalf of Air Canada, Skyworks Leasing has arranged the sale of 25 E190 aircraft to Beautech Power Systems. Air Canada is gradually…

By: Aircraft Value News

October 29, 2018

AVN

E190 Values Start to Take Note of E2

The 98-passenger Embraer 190 is a member of a family of commercial jets which have now been in service for over a decade. However, in the face of competitors such as the Superjet 100 and the MRJ, the E-Jet family is beginning to show its age, hence the development of…

By: Aircraft Value News

October 29, 2018

AVN

Aircraft Asset Assessment Embraer E190

Market Presence. With the development of the E2 series of aircraft, Embraer has been actively seeking to sell new aircraft offering considerable incentives in the hope of maintaining production. This has affected the used market making it more difficult to dispose of aircraft coming off lease and seeking to be…

By: Aircraft Value News

October 29, 2018

AVN

B767-300ER Historical Value Behavior Defy Expectations

The values of the B767-300ER have managed to defy expectations over the years not least because of delays to various programs but even now the type has its attractions. While the values of the B767-300ER are under pressure there can be no escaping just how successful the type has been.…

By: Aircraft Value News

October 29, 2018

AVN