Aircraft Value News [April 13, 2020] -

Issue: April 13, 2020

ERJ145 Values Experience Significant Fall Over Last Decade

The values of the ERJ145 – originally designated the EMB145 – have fallen by more than 85 percent over the course of the last 12 years. The values of a new ERJ145 in 1996 approximated $14 million and by the time production ended in the mid 2000’s, the value of…

By: Aircraft Value News

April 14, 2020

AVN

Discounting of Market Values & Lease Rentals Begin in Earnest

Magnitude of Market Movements Not Uniform The effect of COVID-19 on the airline industry cannot be overestimated with nearly half of the worlds fleet grounded but with the extent now beginning to be fully appreciated, the effect on values and lease rentals can be more accurately assessed, particularly as the…

By: Aircraft Value News

April 14, 2020

AVN

A380 Values Affected Most by Downturn

Out of an operational fleet of 242 listed by Airbus as of the end of February 2020, there were only 13 A380s in service at the time of writing with every other A380 aircraft listed as being in storage. While a swathe of other aircraft types that are laying idle…

By: Aircraft Value News

April 14, 2020

AVN

Storage Costs Start to Mount

Nearly 50 percent of the worlds fleet have already been parked and more, particularly in the U.S., are scheduled to be placed into storage and the longer they remain in storage, the more difficult and expensive will be the return to service. With nearly a 1,000 B737 MAX aircraft in…

By: Aircraft Value News

April 14, 2020

AVN

Distressed Values Becomes Relevant Again

The need for financial institutions to consider asset values should a sale be necessary brings distressed sale discounting to the fore once more. The level of discounting needed to dispose of aircraft on a distressed – or fire sale – had achieved a measure of stability for some more popular…

By: Aircraft Value News

April 14, 2020

AVN

Aircraft Ratings Register Significant Falls

Ever since The Aircraft Value Analysis Company (AVAC www.aircraftvalues.net) first created the now industry standard Aircraft Ratings in 2003, which became the benchmark for other appraisers and asset based lending, the Ratings have experienced relatively little volatility between one year and the next, but COVID-19 has caused a significant fall…

By: Aircraft Value News

April 14, 2020

AVN

Narrowbodies Fare Better than Widebodies

COVID-19 has had a disastrous effect on the values of virtually all aircraft types but some narrowbodies are managing to shrug off the worst of the discounting. In this issue, a ROM (rough order of magnitude) is provided for narrowbodies in terms of the level of discounting to be applied…

By: Aircraft Value News

April 14, 2020

AVN

Turboprops Experience Downward Pressure

The market for turboprops is experiencing slightly different dynamics than the commercial jet market. Many turboprop flights are necessary due to the absence of surface transportation and the need to maintain links with remoter parts. However, turboprops have been heavily impacted by the drop in leisure routes around the world.…

By: Aircraft Value News

April 14, 2020

AVN