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Aircraft Archive: Airbus A380
Length of Lease Continues to Influence Impact Rentals
The LRM (Lease Rental Matrix), which determines the average lease length and the adjustment to quoted lease rentals to reflect longer or shorter terms, has seen an extension to average terms as demand continues to outstrip supply but the last six months has not seen any significant change. A long…

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May 14, 2018
AVI
A350-900 Lease Rentals Hold Steady
The lease rentals of the A350-900 have been able to achieve a measure of stability despite the slow production ramp up and some quality issues. The lease rentals for the first A350-900s produced in 2014 according to Aircraft Values Pro – www.aircraftvalues.net – amounted to $1.1 million per month. This…

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May 14, 2018
AVI
….. 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…

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April 30, 2018
AVI
Stability (Mostly) for Values & Rentals as Indicators Remain Positive
Replacement Models Continue to Erode Values of Outgoing Models The trend for commercial jet aircraft values and lease rentals generally remains positive as the Northern Hemisphere moves towards the peak season although not all types are managing to avoid a significant decline. The factors that can impact values encompass GDP,…

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April 16, 2018
AVI
SLBs Deals Belie Mid Life Rental Weakness
The number of sale and leasebacks continue with financial institutions buying used as well as new aircraft from both first and second tier operators. The SLB transactions, featuring higher rentals, can distort the real vanilla operating lease rates being paid for widebodies. On a standalone basis, the rates for widebodies…

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April 16, 2018
AVI
Debate over Date of First Flight versus Date of Delivery Continues
While lease rentals tend to be determined on the basis of the year of build, values continue to be calculated on the month of build although “build date” can continue to mean different things to different appraisers. Some appraisers in establishing the “build date” will use the date of delivery…

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April 2, 2018
AVI
A340-500 Values Tested With Marketing of Four More Units
Values have Fallen by 90+ Percent in Just Over Ten Years The fall in the value of used widebodies continues to be a concern although the decline in the values of the A340-500 represents the extreme. While the values of used mainstream narrowbodies continue to enjoy a measure of success…

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April 2, 2018
AVI
Lessors Seek to Minimize Widebody Reconfiguration Costs
Costs Can Be Contained by Advanced Planning The lessors have always tended to shy away from leasing the larger widebodies because of the more limited remarketing opportunities and the sometimes substantial reconfiguration costs and extended timescales when moving aircraft between lessees. The narrowbodies usually require little reconfiguration not least because…

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March 19, 2018
AVI