Interest Rates and Lease Rentals per month correlate strongly against one another and are positive in orientation (as interest rates increase, lease rentals also increase) Using A320-200 new build aircraft (years 1998 to 2017), adjusted monthly lease rates using CPI; thus adjustment is in 2017 US dollars Overlaid lease rates with one-year Libor rates […]
Widebody airframe maintenance costs featured at Airfinance Investors’ Masterclass in Korea, February 2018.
What Goes Up Must Come Down Middle East order backlog for widebody aircraft now totals about 700 aircraft. The order backlog in this region has risen rapidly from ten years ago and now represents about 30% of worldwide widebody aircraft orders. Of significance is the relationship between oil price and orders for widebody airplanes. As […]
Narrowbody aircraft dominate the commercial aircraft landscape in absolute fleet terms As of April 2017, there are almost 16,000 NB aircraft in service worldwide with an order backlog of almost 11,000, a record number Widebody and regional jet aircraft are diminished in comparison And, the disparity is likely to get larger: the backlog of NBs […]
Passenger and Air Cargo growth strong and sustained Both passenger and cargo traffic registering robust growth over last four years Passenger traffic has averaged 6.1% growth during past 50 months; cargo, 4.8% All major world regions with strong growth performance Main drivers of growth continue to be economic, market liberalization, and global trade However, some […]
With interest rates increasing, it is instructive to remember this interest rate vs. aircraft retirement relationship
Passenger traffic data from IATA through May indicates solid growth overall, increasing by 6% for the period Jan-May 2016 vs. the same five month period in 2015 Growth varies by major world region and the chart puts it into context of not only growth through May by major region, but also the size of […]
The aircraft operating lease is a major driver of industry growth in aircraft ownership and operation Aircraft operating leases are now about 40% of all commercial aircraft ownership in the world and may grow to 50% over the long term While there are dozens of operating lessors, about 20 companies dominate the landscape […]
Annual deliveries of turboprop aircraft declined dramatically during the past 20 years but since 2005 have enjoyed a resurgence in popularity. Turboprops are better suited to operate out of many regional airports and they will always be capable of performing certain missions (and short range flights in particular) more cost effectively than their jet-powered siblings. […]
AVITAS Chart of the Month – April 2016 – Alaska Airlines and Virgin America Aircraft Fleet Commonality? Zero!
Alaska Airlines and Virgin America Aircraft Fleet Commonality? Zero!