Aircraft Value News [June 23, 2008] -

Issue: June 23, 2008

Four Engined Residuals Under Pressure

Increased Risk Associated with Financing The perceived risk associated with financing new and nearly new four-engined aircraft, such as the A340-600, is increasing with each dollar rise in the price of fuel, thereby undermining residual value expectations and raising concerns over the lack of remarketing opportunities. The rising cost of…

By: Aircraft Value News

June 23, 2008

AVN

A350 Values Still In Melting Pot

Despite the A350 not being due to enter service for at least another five years, the number on order is increasing the demand for residual value calculations which, given the still fluid performance of the aircraft, are proving difficult to accurately define. The still fluid nature of the performance of…

By: Aircraft Value News

June 23, 2008

AVN

New Replace Old With Usual Consequence for Values

The values of B737 Classics continue to face difficulties as a consequence of contraction by key operators and as new aircraft replace the existing. Continental has announced that it will withdraw 67 B737-300s and B737-500s during the course of 2008 and 2009. United will also increase the number of retirements…

By: Aircraft Value News

June 23, 2008

AVN

Lease Rentals Remain On Even Keel

While values of some aircraft remain under threat due to major - and minor - fleet contractions, lease rentals continue to remain stable as lessors are still able to place most assets. The last recession of six years ago saw lessors scrambling to re-negotiate leases with existing operators, fearful of…

By: Aircraft Value News

June 23, 2008

AVN

Widebody Rentals Remain Stable

While the older narrowbodies may be facing more uncertainty the widebody segment continues to experience sufficiently strong demand as to allow lease rentals to remain essentially unmoved. The U.S. airlines, while seeking to reduce domestic capacity, still have a desire to expand international operations. For the rest of the world,…

By: Aircraft Value News

June 23, 2008

AVN

Values of Older Widebodies Continue To Equate To Scrap Levels

The combination of age, maintenance and inefficiency continue to take their toll on the older widebodies so much so that values for virtually all type remain at scrap levels. The high price of fuel continues to accelerate the retirement of older aircraft. The cost of reconfiguring the older widebodies is…

By: Aircraft Value News

June 23, 2008

AVN

B737-400 Values Face New Era of Decline

The disposal of some 200 B737 Classics over the course of the next eighteen months has increased the sense of vulnerability of the B737-400 to market forces. Over previous years rentals of the B737-400 had been improving but more recently have exhibited stability. Though the -400 lacks the payload/range performance…

By: Aircraft Value News

June 23, 2008

AVN

Aircraft Asset Assessment

The B737-400 Market Presence. The B737-400 is clearly showing its age in terms of efficiency, specification and market orientation. Structure and systems can be traced back to the 1960s, if not before, while performance and capacity reflect the 1980s. Ageing brings wear and tear and rising maintenance costs. However, partly…

By: Aircraft Value News

June 23, 2008

AVN

Ryanair Sells Six B737-800s For "$38.75 million" Each

The Ryanair financial accounts for 2008 reveal that six B737-800s were sold for a total price of Euro150.00 million, which is considerably more than the airline would have paid for the aircraft. Ryanair has been particularly astute in buying aircraft when the market is at its worst and has managed…

By: Aircraft Value News

June 23, 2008

AVN