Subscribe Now

Aircraft Asset Assessment B737-800

April 12, 2021

Market Presence. The existing 800 -8’s will take some time, possibly two years or more, to return to service but these will be combined with newly produced aircraft thereby reducing the demand for the B737-800 and even the A320ceo. The sustained delivery of new A320neo aircraft may therefore be having a discernible effect on those A320ceos in storage. At this stage of the downturn, customers for the A320neo are contractually obligated to take delivery even if they are immediately placed into storage. As the months progress, then the effect of deferrals takes on greater significance, hence the intended production cutbacks announced by Airbus in the coming years. Boeing has already seen deferrals and deliveries can be cancelled if the manufacturer is unable to complete a delivery within twelve months of the agreed delivery date. Nonetheless, there are many customers of the MAX who will be anxious to take advantage of the economics of the LEAP powered MAX. The issue for the MAX is in terms of passenger acceptance and possible investor reticence. For the MAX, then the media will likely highlight any slight issue with the aircraft whereas more serious incidents involving other types will be ignored. American has already announced that it will allow passengers to rebook should they not wish to travel on a MAX; other operators will likely provide similar changes. There may also be some investor reticence in financing aircraft in the short term. Despite these negatives, the MAX is returning to service and the effect on the A320ceo and B737-800 will be discernible as the market moves away from the depths of April 2020.

You must be logged in as a subscriber to Aircraft Value News to view this page. Please log in below.

Please contact [email protected] or
call 1-888-707-5814 if you are unable to login.
Not a subscriber? Sign-up now for access.