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Archive: Rotorcraft Top Stories
Aircraft Asset Assessment
The MD83 Market Presence. The MD83 experienced its heyday in the late 1980s and early 1990s. While values started to stumble more than ten years ago, availability only became a major issue in recent years. Even before production ceased in 1999, the MD83 was already facing severe pressure from the…

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March 30, 2009
AVN
Harsher Market May Accelerate Not Delay Narrowbody Replacement
The impetus for a replacement of the A320 and B737NG families is constantly shifting as manufacturers and operators grapple with rapidly changing market conditions but the downturn has the potential to accelerate rather than retard the replacement process, thereby undermining residual value expectations of existing equipment. With CFM finalizing the…

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March 30, 2009
AVN
Rising Number of Parked Aircraft Will Delay Value Recovery
As the number of aircraft in storage rises, the recovery in values will be delayed even if such aircraft are not being actively marketed. Aircraft values are impacted by two statistics – the number and relative proportion of aircraft being actively marketed and those parked or stored. For nearly a…

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March 16, 2009
AVN
A320 & B737NG Lease Rentals Experience Expected >20 Percent Fall
Lower Rates Reflect Lesser Demand & Lower Interest Rates Lease rates have exhibited a significant fall over the course of the last six months such that rentals of newer narrowbodies are perhaps 20-25 percent off their recent peak. The market for newer narrowbodies continues to face severe pressure. Lessees are…

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March 16, 2009
AVN
Engine Values Experience Falls As Fleets Contract
Engines have been seen as something of a safe haven given greater lease return potential as well as longevity but as the demand for spare engines has fallen so then so have values. Hundreds of aircraft have been placed into storage over the last year and more are destined to…

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March 16, 2009
AVN
“Beware of Geeks Bearing Formulas”
With the market experiencing a virtually unprecedented fall in traffic, gauging the extent of a decline and its duration requires an appreciation of new market dynamics rather than an extrapolation of past trends. Warren Buffett, the high profile investor, stated in his March 2009 address to investors that they should…

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March 16, 2009
AVN
Freighter Rentals Experience Significant Fall
Data concerning the state of the airfreight market makes for grim reading. Traditionally, the freight market has been the first to suffer in a downturn and the first to recover. While the first months of the year have historically been lean, the year on year figures demonstrate the depth of…

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March 16, 2009
AVN
Widebody Values Continue to Fall
Widebodies may be faring better than narrowbodies but there can be no escaping the fact that values have fallen. The contraction of operations and the deferral of new orders means that there are now a significant number of widebodies in the parking lot. The demand for any those seeking to…

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March 16, 2009
AVN