Aircraft Value News [October 18, 2004] -

Issue: October 18, 2004

50-seat Regional Jet Values Weaken

Values Give Way to New Types & Increased Risk Values of 50-seat regional jets are beginning to soften as a result of the arrival of a new generation of larger regional jets, the concentration of 50-seat regional jets in North America, the large number of 50 seaters delivered to date,…

By: Aircraft Value News

October 18, 2004

AVN

Swelling of Dash8 Order Book Keeps Values on Track

Long in the shadow of the larger turboprops, the poor relation of the Dash8 family, the -300, has received enough orders over the last few months to create a backlog sufficient to stabilize used values. The order for 17 Dash8Q-300s from Air New Zealand provides a much needed stimulus to…

By: Aircraft Value News

October 18, 2004

AVN

$10 Million Sale of 20 B737-200ADVs Reflects Age & Maintenance Status

Ryanair's [RYAAY] sale of 20 relatively young B737-200ADVs at a bargain price of $10 million reflects the damage caused to some of the aircraft by scribing. The carrier sold the 20 aircraft and spare engines to U.S. based Autodirect Aviation for $10 million. The aircraft are set to be parted…

By: Aircraft Value News

October 18, 2004

AVN

B737-600 Values Continue to Decline Despite WestJet Order

Values of the B737-600 continue to decline despite the sustained improvement in market conditions and limited interest from Canadian carrier WestJet [WJA]. The values of other members of the B737NG family, specifically the -700 and -800, have risen over the last six months due to the imbalance between supply and…

By: Aircraft Value News

October 18, 2004

AVN

High Fuel Price Makes for Tough Times

Despite the prospect of higher interest rates resulting from the inflationary effects of rising fuel prices, lease rentals of older equipment continue to be held back by the increasing appetite for newer equipment. With an improving market, the normal trend is for newer equipment to be absorbed first, for operators…

By: Aircraft Value News

October 18, 2004

AVN

Even Scrap Values Provide Little Solace

The sale of 20 B737-200ADVs, a number of spare engines and associated spares by Ryanair [RYAAY] for $10 million highlights the continued deterioration in Chapter 2 values. The line between airworthiness and the scrap yard is increasingly fine. For the B737-200ADV, in particular, the aircraft is subject to a number…

By: Aircraft Value News

October 18, 2004

AVN

B737-400 Values Experience Modest Fall

The values of the B737-400 have experienced a period of stability over the course of the last year; however, the expectation of a substantive improvement appears misplaced, even given the shortage of newer equipment. For the last year, rentals of the B737-400 have been improving. Though the -400 lacks the…

By: Aircraft Value News

October 18, 2004

AVN

B747-400 Derivative Must Secure 150 Orders to Avoid Value Marginalization

Boeing's [BA] effort later this month to present some details of the B747-400 derivative to airlines in Hong Kong provides some evidence that the U.S. manufacturer is serious about offering a replacement for the -400. Whatever details Boeing will present, interest in the aircraft is likely to be muted in…

By: Aircraft Value News

October 18, 2004

AVN

Cost of Fuel Likely to Keep Constrain on Demand

Despite the sustained improvement in market conditions and the rise in traffic, the International Air Transport Association (IATA) still expects world airlines to report a net loss of up to $4 billion this year partly because of the hike in fuel prices. The near 20 percent increase in international traffic…

By: Aircraft Value News

October 18, 2004

AVN