Aircraft Value News [November 23, 2009] -

Issue: November 23, 2009

Lessors Sustain â€œ20â€ Percent Margin

Lessors Shrug Off 30 Percent Decline in Rentals The current crisis in aviation continues but lessors to date have managed to largely sidestep the two worst effects of a downturn that impact lessors â€“ repossession and renegotiation of rates â€“ thereby maintaining their highly enviable twenty percent margins. The leasing…

By: Aircraft Value News

November 23, 2009

AVN

Half to Full Life Maintenance Adjustment Continues to Confuse Values

Values of aircraft are increasingly being adjusted to reflect a maintenance status other than the traditional half life. The market has become dominated by leases and finance agreements that require lessees and borrowers to return aircraft in full life condition â€“ except of course that the aircraft cannot be practically…

By: Aircraft Value News

November 23, 2009

AVN

Newer Aircraft Favored As Airfreight Provides First Indication Of Recovery

Airfreight is usually the first segment of the industry to indicate a recovery â€“ and a recession â€“ and this cycle is no different with fragile but discernible improvements in traffic levels such that demand for capacity will start to emerge once more in the first half of 2010, prompting…

By: Aircraft Value News

November 23, 2009

AVN

Rates Reach Trough

With lease rentals having already fallen so far, there is little opportunity to fall further. The older widebodies may be among the least desirable of types but lessors cannot keep on lowering rentals to stimulate demand. Instead, sometimes there has to be acknowledgement that aircraft have to be simply parked.…

By: Aircraft Value News

November 23, 2009

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Low Point for Narrowbody Values Approaching

The values of the more modern narrowbodies have experienced a virtually unprecedented decline over the course of the last two years. Having experienced such a fall, there are likely to be lesser declines in the near future. However, an improvement is not expected until 2011. With the peak in values…

By: Aircraft Value News

November 23, 2009

AVN

The End of the Line for the Leviathan

There are now only 36 -300s remaining in service and it is little wonder that values are at rock bottom levels. The problems experienced by many international carriers since the late 1990s has left the -300 isolated and vulnerable. In the late 1980s the prospects for all widebodies were seen…

By: Aircraft Value News

November 23, 2009

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Aircraft Asset Assessment

The B747-300 Market Presence. The -300 represented a means for Boeing to stimulate new sales of the B747 during the development of the much more versatile -400 while also validating the concept of the stretched upper deck. Today the -300 has moved away from being a niche to a marginalized…

By: Aircraft Value News

November 23, 2009

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Corporate Jet Values Seek to Overcome Dramatic Fall in Deliveries

The values of corporate jets appear to be stabilizing after months of declining in the face of adverse press and weak economic conditions. The number of deliveries of corporate jets as reported by the General Aviation Manufacturers Association (GAMA) for the first nine months of 2009 makes for dismal reading…

By: Aircraft Value News

November 23, 2009

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