Aircraft Value News [July 20, 2020] -

Issue: July 20, 2020

Capacity Crunch May See Demand Outweighing Capacity in 2024

Future Values Of “Popular” Types May Be Higher than Previously Forecast With thousands of aircraft still parked and lessors fielding requests for rent holidays, rental reductions and even repossession, the market is experiencing the most severe downturn since the dawn of the jet age, eclipsing the effects of the Yom…

By: Aircraft Value News

July 20, 2020

AVN

Appraiser T Sees “Many More Negative Changes” to Values and Lease Rentals

There continues to be a divergence of opinion among appraisers on the effect of the Covid event on values and lease rentals both in terms of magnitude and timing although the methodology employed will have a bearing on the assessment. Following on from the previous analysis of the changes to…

By: Aircraft Value News

July 20, 2020

AVN

Potential Ending of Boeing B747-8F Production May Not Impact Values

With only some 15 -8Fs remaining to be delivered and a production rate of six per annum, the economies of scale may have at last caught up with the B747-8F such that there is speculation that the last B747-8F will be produced in 2022. The possible ending of production even…

By: Aircraft Value News

July 20, 2020

AVN

Freighter Rates Stable As Traffic Slows

The lease rentals of the freighters have stabilized after seeing a slight improvement, at least for short term rentals, during the course of this on-going crisis. The return to service of more widebodies, the greater use of hybrid “paxfreight” aircraft, the lesser need for urgent PPE shipments, and overall…

By: Aircraft Value News

July 20, 2020

AVN

New Narrowbodies See Sub 20% Reductions

The values of nearly all passenger aircraft have been impacted by the Covid event to a greater or lesser extent but the newer narrowbodies such as the A320neo and B737MAX have fallen by the least amount. On a comparative basis – pre Covid March versus Covid April for example…

By: Aircraft Value News

July 20, 2020

AVN

B737-400 Values Inevitably Fall

The values of the -400 were falling even before Covid despite the demand for freighter conversion and the decline has been accelerated. Over the period 2004-2007 rentals of the B737-400 had been improving but since then have experienced significant declines before more recently seeing a lower rate of decline. Aircraft…

By: Aircraft Value News

July 20, 2020

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 even more so in the context of the Covid Event. Structure and systems can be traced back to the 1960s while performance and capacity reflect the 1980s. However, partly perhaps because…

By: Aircraft Value News

July 20, 2020

AVN

Covid Event Exerts Negative Pressure on Aircraft Ratings

The Aircraft Ratings for most passenger aircraft have inevitably changed for the worse due to the Covid event even if there is some improvement expected in the latter part of the seven year event horizon. The market for the A320ceo family is already proving more difficult than the pre-Covid event…

By: Aircraft Value News

July 20, 2020

AVN