TP Aerospace
AviTrader sponsorship ad

IBA sees major structural downshifts in values of current generation widebodies

New generation widebody and narrowbody aircraft have seen only modest declines in their market values despite the enormous challenges of COVID-19, according to aviation industry consultant IBA.

In its latest Aircraft Values webinar, IBA made no base value changes to new generation widebody aircraft. It ascribes only modest market value changes and the quickest recovery for this aircraft group. However, there are near-term risks due to aircraft insolvencies and restructurings which could increase supply. Data from IBA’s Insight.iQ platform shows that market values dropped between just 5% and 8% for all new Boeing 787, Airbus A330neo and A350 models except the Boeing 787-8 which dropped 13%.

In the new generation narrowbody segment, Airbus outperformed Boeing from a value perspective. Although neither OEM’s models saw a base value change, the market values of new A320neo family and A220 aircraft declined between just 3% to 8%, whilst new Boeing 737 MAX models declined 11-12% with values and lease rates for this type expected to remain under continued pressure.

Conversely, the values of previous generation narrowbodies have seen the A320ceo fall further than the Boeing 737NG, although IBA believes the 737NG’s more stable position is a temporary one, upheld by the small number of 737 MAX aircraft currently in operation.

Of the A320ceo family, the A321 has performed best from a value perspective, with a market value fall of just 17% for a five-year-old aircraft, due to higher utilisation and greater attractiveness for freighter conversions. With over 30% of the A320ceo fleet still in storage, market values for a similar age aircraft have dropped 20% with lease extension rates holding well but secondary placement rates under significant downward pressure.

Market values of the most popular Boeing 737NG, the 737-800, have fallen by 17% –  less than the A320ceo. Just over 20% of 737-800s are in storage – a position sustained principally by the grounding of the 737MAX. As supply levels of the MAX increase, IBA forecasts further falls in values and lease rates for the 737NG.

Phil Seymour, President of IBA, says: “Whilst COVID has negatively affected the values of all aircraft types, current generation widebodies have suffered most reflecting the pandemic’s impact on long-haul and business travel. New generation aircraft, and in particular narrowbodies, are proving much more resilient, with the A320neo continuing to lead that marketplace from a value and operational perspective.”

Current generation widebody aircraft have all seen downward adjustments to both base and market values. Of these, the Airbus A380 is worst affected, with a combination of the largescale grounding of the global fleet and the forthcoming end of production driving market values down by over 50% for aircraft of all ages.

The Boeing 777 has fared better, seeing its market value fall by 19% for a five-year-old aircraft – a position sustained by ‘preighter’ activity, its potential for freighter conversion, its retention in service by airlines who favour it over larger types such as the A380, and delays to the Boeing 777X.

Values of the A330ceo have continued a downward trajectory that started before the onset of COVID-19. With significant oversupply in the marketplace, driven partially by the failure of numerous airlines with A330s in their fleets, market values have dropped 19% for a five-year-old aircraft, and part of an ongoing trend that has seen values halve since 2018.

Oversupply remains a significant issue for the turboprop marketplace, although IBA has made no changes to the base values of the segment’s two principal types – the Dash 8/Q400 and the ATR. Of the two types, the ATR is set to recover more quickly with a market value drop for a three-year-old aircraft of 2-7% depending on the variant, whereas a Dash 8/Q400 of the same age has dropped 13%.

In the regional jet marketplace, high storage levels of certain types, particularly the Embraer E190, is depressing values, with demand present but at suppressed pricing. However, IBA forecasts a recovery in utilisation and values as domestic and regional markets re-open.

Thursday March 28, 2024
Ground-breaking of AAR's new facility in Miami © AAR Corp.
On Wednesday, March 27, AAR CORP. commenced the construction of its new maintenance, repair, and overhaul (MRO) facility in Miami, marking a significant milestone for the company. Over 400 attendees congregated to commemorate the occasion, with John M. Holmes,... Read More »
Thursday March 28, 2024
Johan Malmqvist
Lilium has appointed Johan Malmqvist as Chief Financial Officer (CFO) effective April 1, 2024, bringing more than 25 years of experience as a CFO of global public and private companies across a variety of sectors and geographies. Most recently, he served as CF... Read More »
Thursday March 28, 2024
The Airbus A220 is powered by PW1500G engines
SIA Engineering Company (SIAEC) has entered into an agreement with Pratt and Whitney (P&W) to exit from the PW1500G engine risk-revenue sharing programme (RRSP) that was held through its wholly-owned subsidiary, NexGen Network (2) Holding (NGN2). This prog... Read More »
Thursday March 28, 2024
Honeywell will initiate a voluntary tender offer to acquire all outstanding shares of Civitanavi for a purchase price of €6.30 per share in cash © Civitanavi
Honeywell will initiate a voluntary tender offer to acquire all outstanding shares of Civitanavi Systems S.p.A., for a purchase price of €6.30 per share in cash (an equity value of approximately €200 million at closing). The acquisition will further streng... Read More »
Thursday March 28, 2024
STS Aviation Group
STS Aviation Group has announced the expansion of STS Aviation Services UK, with the opening of two new line maintenance stations at East Midlands (EMA) and Norwich (NWI) airports in the United Kingdom, effective April 1, 2024. This strategic expansion is set... Read More »
Thursday March 28, 2024
© Lufthansa and the trade union Ver.di resolved the ongoing pay dispute
Following successful mediation, Lufthansa and the trade union Ver.di have reached an agreement on the main features of a collective labour agreement for approximately 25,000 Lufthansa employees, announced in Frankfurt. Details of the agreement to be disclosed ... Read More »
Wednesday March 27, 2024
Condor Boeing 757-300 aircraft © AirTeamImages
Crestone Air Partners, an aviation asset management platform supported by Air T, has successfully acquired eleven Boeing 757-300 aircraft. This milestone transaction not only signifies substantial growth for Crestone but also underscores its capability to exec... Read More »
Wednesday March 27, 2024
SAS
SAS AB has officially applied for company reorganisation (Sw. företagsrekonstruktion) in Sweden today, March 27, 2024. The commencement of this process is contingent upon approval from the Stockholm District Court. It’s important to note that this appli... Read More »
Wednesday March 27, 2024
© Brussels Airlines
Brussels Airlines has successfully concluded negotiations with cockpit unions regarding their reward package, with the agreement formally signed on March 24, 2024. The specifics of the agreement will be communicated to the cockpit community in the forthcoming ... Read More »
Wednesday March 27, 2024
IFS Cloud has been selected by Joby Aviation to shape the future of eVTOL aircraft
Joby Aviation, the manufacturer of eVTOL aircraft for commercial air taxi services, has selected the IFS Cloud for Aviation Maintenance solution for its pioneering eVTOL aircraft maintenance processes. Joby continues to lead the way on the development of eVTOL... Read More »
Wednesday March 27, 2024
Over two-million gallons of blended SAF will be supplied into the fuelling system at Schiphol Airport over the course of 2024 © Emirates
Emirates has commenced the activation of its fuel agreement with Neste this month at Amsterdam Schiphol Airport. Over two-million gallons of blended sustainable aviation fuel (SAF) will be supplied into the fuelling system at Schiphol Airport over the course o... Read More »
Wednesday March 27, 2024
the Ai Co-Validator promises to radically transform the way organisations process large volumes of incoming reports by leveraging artificial intelligence (AI)
ASQS, a provider of integrated aviation quality and safety management solutions has launched its latest feature – the iQSMS Ai Co-Validator. Developed in cooperation with Lufthansa Industry Solutions (LHIND), a renowned IT service provider specialising in di... Read More »
Tuesday March 26, 2024
Abelo has acquired four ATR 72-600s through SKY Leasing, currently on lease to IndiGo © ATR
Regional aircraft lessor Abelo has acquired four ATR 72-600 aircraft through SKY Leasing. This strategic transaction expands Abelo’s portfolio to a total of 57 owned and managed aircraft. All four aircraft are currently on lease to India’s low-cost carrier... Read More »
Tuesday March 26, 2024
© Shutterstock
AAR CORP. has reported third-quarter fiscal year 2024 consolidated sales of US$567.3 million and income from continuing operations of US$14.0 million. For the third quarter of the prior year, the company reported sales of US$521.1 million and income from conti... Read More »
Tuesday March 26, 2024
New bins will be available on 50 aircraft by the end of this year and can accommodate up to 29 more bags per flight, helping make room for everyone's carry-on © United Airlines
United Airlines (United) has released that it is installing new, larger overhead bins on its SkyWest operated Embraer E175 fleet that will provide more room for passengers’ roll aboard carry-on bags. These new bins will be available on 50 aircraft with a... Read More »
Tuesday March 26, 2024
C&L Aerospace has opened a new warehouse in Leipzig, Germany © Shutterstock
C&L Aerospace, a C&L Aviation Group company, has opened a 20,000-ft² parts warehouse in Leipzig, Germany. This location was carefully researched and chosen in order to provide the most convenient shipping hub for Europe and beyond. The company warehou... Read More »
Tuesday March 26, 2024
Pentagon 2000 Software
Pentagon 2000 Software, Inc. has successfully completed the SOC1 Audit and Certification process. This audit, conducted by third-party auditor Ernst & Young according to AICPA standards, is crucial for ensuring trust in financial reporting. The audit’... Read More »
Tuesday March 26, 2024
David McBride
David McBride has been appointed Chief Technology Officer (CTO) for Supernal LLC – Hyundai Motor Group’s Advanced Air Mobility (AAM) company. McBride will lead Supernal’s technology strategy and vehicle development, reporting to CEO, Jaiwon Shin. “Foll... Read More »
Monday March 25, 2024
Dave Calhoun
Boeing President and CEO, Dave Calhoun, has declared his intention to step down from his CEO position at the end of 2024. However, Calhoun will continue to guide Boeing through the remainder of the year to ensure the completion of crucial ongoing initiatives a... Read More »
Monday March 25, 2024
Airbus Defence and Space has signed an agreement to acquire INFODAS, German company that provides cybersecurity and IT solutions © Airbus
Airbus Defence and Space has announced plans to acquire INFODAS, a leading Cologne-based German firm specialising in cybersecurity and IT solutions for the public sector, including defence and critical infrastructures. The agreement, subject to regulatory appr... Read More »

2023 MEDIA KIT

Aviation Media Pack

Learn more on how AviTrader can expand your market

Please contact

Tamar Jorssen
Vice President Sales & Marketing
+1.778.213.8543
[email protected]
Mailing Address
AviTrader Publications Corp.
Suite 305, South Tower
5811 Cooney Road
Richmond, BC V6X 3M1
Canada

Subscribe to the most widely accepted news source in the aviation industry!


Free Daily, Weekly and MRO Publications delivered to your Inbox!
News Alerts, Editorials, Marketplace, Executive Interviews +more

Select publications:

*we respect your privacy and AviTrader will not share your email address to any 3rd Parties.

Scroll to Top
AviTrader

FREE
VIEW