HOTR: Aircraft lease rates, values continue to plunge in virus environment

By the Leeham News Staff

June 30, 2020, © Leeham News: Fifteen year old aircraft values and leases plunged compared with six month ago, according to the latest analysis by Ishka.

Ishka is an aircraft appraisal and consultancy.

The aircraft are assumed off lease and immediately available. Mid-life maintenance status is also assumed. Rates and values will continue to decline, Ishka believes. Aircraft on-lease have higher values and lease rates.

Bankruptcy update

NokScoot, SunExpress and Level Europe joined those carriers filing bankruptcy since LNA’s last update.

9 Comments on “HOTR: Aircraft lease rates, values continue to plunge in virus environment

  1. @Scott – if an airline with A220’s was to go bankrupt, how would you classify those aircraft? As as Regional or Narrowbody?

    • They were designed as mainline aircraft, not regional.

    • They are not regional aircraft due to their high range

      In my modest understanding, it depends on the distance of the routes that it operates, that would define if it is regional or not. I calculate that on average less than 800 km, it would be regional, and in the other case not.

  2. I am surprised that A380 didn’t have the most dropped. QANTAS has parked all their A380’s for atleast EOY and alot more airlines are not operating them. Wonder how many will come back from long term storage.

    • Probably a matter of few transactions vs strong value. Their only value was spare parts and that likely is dropping as they are retired en masse and no spare parts are needed.

    • I don’t think anyone other than Emirates will bring them back.

      • Low fuel prices will make it worthwhile for many routes and its a passenger favourite. Say Sydney to Los Angeles when every other airline was flying smaller widebodies and the viable departure times are all across 2-3 hrs in the morning for a 16-17 hr flight Qantas can be the point of difference.

        • ok
          I agree, more than one will fly again, in less than a year, although few

    • Qantas been profiting at least 1.2billion every single year for past five yrs. Salute to downunder

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