Lack of financing hurting second hand values: Ascend - Suppliers Share Wrap

There is increasing evidence that a lack of financing, due to the global financial crisis, is continuing to hurt second hand aircraft values, according to Ascend Worldwide.

Airbus production widebodies are feeling the pressure, with the A330-200 “especially vulnerable at this juncture”, according to Ascend, while B777-200ER values are on watch with the potential sale of the Egyptian fleet “very much a benchmark deal”.

Regional aircraft values are also falling

The ATP passenger and freighter versions have come down as this type is increasingly marginalised. There have been a number of Jetstream 41s on the market not reaching their asking price and cherry picked of the best examples, according to Ascend. For the Avro RJ family and the BAE 146 family, “we have the observed trend of cash sales rather than leasing”. Year of build is now immaterial in the 146 fleet.

Values of second hand Dash 8-Q300s, Q200s & Q100s have all declined in line with the recent decrease in Q400 values and there is also a continued narrowing of values as year of build premium is eroded. As the Dash 8 Family has been affected, the ATR family has been calibrated accordingly.

The Embraer ERJ-135 and -145 families have also come down, as problems for the small jets are increasing, particularly following the restructuring in the US regional sector, with value hits “very pronounced” on younger equipment, according to Ascend.

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Embraer’s shares slipped 0.4% yesterday, while Boeing fell 0.8% and Airbus parent EADS dropped 1.3%.

Selected Aviation suppliers daily share price movements (% change): 10-Dec-09