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Aircraft Archive: McDonnell Douglas
Long Term Residual Values Influenced by Government Bailouts
While there is naturally considerable focus on current market values and how they might improve in the short term, there is also a clear need to consider the effect of the Covid event on long term values and in this regard the French bailout of the aerospace sector. A number…

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June 22, 2020
AVI
Turboprop Rentals Downward Pressure
  The market for turboprops is experiencing slightly different dynamics than the commercial jet market. Many turboprop flights are necessary due to the absence of surface transportation and the need to maintain links with remoter parts. However, turboprops have been heavily impacted by the drop in leisure routes around the…

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June 22, 2020
AVI
Demand for Airliner Business Aircraft Could Rise
The use of the airliner type of aircraft could rise in the near term as VVIPs seek to avoid the restrictions imposed on normal flights and because of the availability of more modern aircraft. The demand for airliner jets is expected to increase as the very wealthy seek to ensure…

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June 22, 2020
AVI
MD90 Values Collapse
The values of the MD90 are no more. With Delta accelerating the retirement of its fleet there is little likelihood of widespread use by other operators. Prior to the Covid event, Delta operated 29 of the type but this month sees the withdrawal of all MD90s and MD88s. Thus, unless…

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June 22, 2020
AVI
Aircraft Asset Assessment
The MD90 Market Presence. The reasonable operating economics, low noise footprint and restriction emissions still failed to generate interest in the type from all but a single operator in the last decade even when alternatives were in short supply. The number of pilots certificated on the aircraft was limited making…

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June 22, 2020
AVI
Baseline Lease Rental Terms Undergo Fundamental Change
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 stability terms as demand eases back in terms of passenger growth. Lease terms can vary considerably and are to a large extent dependent on…

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June 22, 2020
AVI
Market for Business Jets Weaker
  The effects of Covid on business jet values may be more muted than for commercial jets but some types are still being impacted. The propensity and appetite to order new business jets, particularly by companies that have had to lay off staff, will be less. With staff losing their…

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June 8, 2020
AVI
B787-8 Loses Much of its Shine
With the backlog for the B787-8 now less than 48, a sense of realism started to impact values even before the Covid event. Most new aircraft undergo a honeymoon period in their early years when values remain high due to a lack of availability as well absence of trading activity.…

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June 8, 2020
AVI