Aircraft Value News [September 20, 2004] -

Issue: September 20, 2004

7 Percent Hike in Boeing List Prices Keeps Pace with Value Recovery

Narrowbody but Not Widebody List Prices Compare Well with Airbus For the first time in two years, Boeing [BA] has published list prices, which show an across the board 7 percent increase compared to the nearly 9 percent boost recorded by Airbus [EADS] for the same period. The greatest rise…

By: Aircraft Value News

September 20, 2004

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Legacy Carriers' Restructuring Shakes Confidence over Value Recovery

The re-entry of US Airways [UAIR] into Chapter 11 and the restructuring of Delta Air Lines [DAL] have increased investor anxiety, but any negative impact on values is expected to be type-specific rather than general. The restructuring of Delta provides for the most significant localized adjustment to current values. The…

By: Aircraft Value News

September 20, 2004

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Fokker 100 Values Benefit from Further Re-Absorption

The ongoing placement of surplus Fokker 100s to second-tier carriers as well as those located in Europe offers the prospect of a further improvement in values. The substantial Fokker 100 availability over the course of the last two years resulted in heavy discounting of values. The essential support of Fokker…

By: Aircraft Value News

September 20, 2004

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Rentals Close to Cyclic Peak

After a period of 12 to 18 months, the recovery of rentals of "aircraft no longer in production" appear to be nearing their cyclic peak. Notwithstanding a further hike in interest rates, which would provide for a further stimulus in rentals, rentals levels have already experienced a 20 to 30…

By: Aircraft Value News

September 20, 2004

AVN

In Production Values Continue to Edge Upward

Values of narrowbodies still in production have continued to edge higher while first generation Stage 3 types continue to struggle. The demand for newer narrowbodies continues to outstrip short-term supply to the degree that the values of the B737NG and A320 families are able to register a further improvement. However,…

By: Aircraft Value News

September 20, 2004

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B777-200 Values Continue to Fall

Values of the B777-200 face continued weakness despite the overall improvement in the market and the demand for quality widebodies. The twin-engine design of the B777-200 coincided with the development of much more reliable engine technology. Without reliable engines, a long-range twin-engine was neither practical nor economical. Only in the…

By: Aircraft Value News

September 20, 2004

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B777-300ER Residuals Stay on Track As SIA & Etihad Increase Orders

New orders for the B777-300ER from Singapore Airlines (SIA) and Etihad, when confirmed, bring the total order book close to 100, the psychological barrier deemed necessary to provide reassurance for residual values. The Letter of Intent from SIA for 18 Boeing [BA] B777-300ERs as well as five from Etihad increased…

By: Aircraft Value News

September 20, 2004

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China Northern A320 Family Acquisition Highlights Weak MD90 Demand

China Northern's difficulties in finding buyers for its 14 MD90s points to trouble for Delta Air Lines [DAL]should it opt to axe its stable of MD90s in the coming years. The limited operator base of the MD90 has witnessed values plummet since Boeing [BA] opted to scrap the program after…

By: Aircraft Value News

September 20, 2004

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Weak Dollar Helps To Offset High Fuel Prices & Aid Values

While the high price of fuel may be turning most operators to newer, more efficient equipment, others are finding that the continued weakness of the dollar, combined with low capital cost, is making out of production widebodies still attractive. Twenty years ago, an oil price spike to nearly $50 a…

By: Aircraft Value News

September 20, 2004

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