Ishka: Aviation Finance’s Post

NEW REPORT: The recent softening of the cargo market is having its repercussions on the large widebody market. Commitments and conversions are being re-assessed in the light of current demand falling short of near-term expectations. Overcapacity may be building in the narrowbody sector too. Some of those converted airframes may be on the ground a little longer as their engines are able to be leased out for better rental opportunities than the aircraft as a whole. In this week's edition of our complimentary Ishka View Extra: Transactions report, we showcase the latest market events and new data extracted from Ishka's leading Transaction Economics platform, including aircraft values and lease rates for 15-year-old aircraft ➜ https://lnkd.in/e5QTsb6s For more detailed aircraft appraisal and valuation info email us here or book your personalised demonstration of our trusted valuations service Transaction Economics ➜ https://bit.ly/3O7rqCQ Any questions? Email us on [email protected] #aviationfinance #airlines #aircraft #lessors #leasing #data #analytics #ishkaview #aviation #values #secondarymarket #investors #aircraftassets #aircraftportfolios #transactions #aircraftvalues #appraisal #airbus #boeing #cargo

What is P&W Reimbursement for grounded aircraft of Indigo A very interesting article on engine related global grounding and some ideas towards the range of compensation. quote " P&W had agreed to compensate it to the tune of $150-200 million, warning the issue will force it to remove “nearly all” its A320neo-family jets from service at some point. That package equates to P&W paying Spirit about $18,000 daily per grounded aircraft, financial firm Jefferies said in a 1 April report. " unquote Does that indicate USD 500000 per aircraft per month. Or USD 6 million per annum per aircraft. at 60 aircraft, it translates to USD 360 Million. That should be about INR 2500 to INR 3000 CR annually. Is this a fair estimate and is this a fair compensation?

Is the narrowbody aircraft conversion market headed for a turbulent patch? 🛫 Recent insights from IBA suggest we could be seeing an oversupply, especially in the B737-800 conversions. Last year alone, 79 B737-800s were converted, and another 27 have already been converted this year. With a slowing demand post-pandemic, these figures hint at potential challenges in placing all these aircraft. In my earlier days working in aviation logistics, I saw how rapidly market dynamics could shift. Once, a seemingly perfect balance between supply and demand quickly tipped into oversupply, affecting lease rates and overall market stability. It feels like déjà vu with the current situation in the narrowbody conversion market. What are your thoughts on the sustainability of this growth in aircraft conversions? 💡 Are we preparing to navigate a potential glut, or is the concern overblown? Here are some eye-catching numbers: The lease rate for an A321 peaked at over $250k a month in July 2019 but has now dipped to just under $200k. Similarly, a 21-year-old 737-800BCF, which could fetch $200k in 2019, is now around $180k. It's clear that the tides are shifting. In an industry as dynamic as aviation, staying ahead of such trends is crucial. Does your business strategy account for these fluctuations? How are you planning to tackle the potential challenges posed by market oversupply? Let’s discuss how we can future-proof our strategies in the face of these market dynamics! 🚀 #aviation #aircraftleasing #marketdynamics #B737800 #businessstrategy

Lufthansa now “sees first [ Boeing ] 777-9 delivery slipping into 2026.” Is anyone really surprised?! h/t: Jason Rabinowitz #airlines #airlinesandairplanes #airlineindustry #airtravel #aerospace #aerospaceindustry #aerospaceengineering #aviation #aircraft #aircraftleasing #aircraftmanagement #avgeek #business #businessnews #assets #assetfinance #investors #investing #finance #pilots

The third quarter was one of stabilization for the business jet market with operations, orders, available aircraft, and pricing all ebbing but at the same time normalizing, according to Global Jet Capital’s latest Business Aviation Market Brief. “Despite this shift, the market continues to show strength and resilience,” Global Jet Capital maintained, pointing to strong OEM backlogs, operations that remain above pre-pandemic levels, and still-low availability of newer and more desirable preowned aircraft. Read more: https://hubs.la/Q02YYhBG0

Some interesting commercial aviation and aircraft leasing trend & forecast metrics by Alton Aviation Consultancy; 1️⃣ The new aircraft order backlog from OEMs represents a massive ~50% of the current in-service fleet. 2️⃣ Current fleet of 31,200 projected to grow to 41,100 by 2034 (2.8% annual growth). 3️⃣ The substantial order backlog coupled with strong aircraft demand means lessors keep mid- and mature-life aircraft flying longer, as Alton notes lessor aircraft retirements now average ~300 per year versus ~400 pre-pandemic. With higher demand, extended aircraft lease life-cycles, and more mid-mature aircraft being (re)leased, it is imperative aircraft lessors stay on top of asset, contract, and maintenance reserves management / forecasting to protect asset values, and therefore eventual part-out / trading potential. V1 Aviation Asset Management LLC offers lessors asset & contract management, and technical / MR forecasting coverage when required - please get in touch to see how we can help protect your fleet! ✈️

“Through the first half of 2024, we continue to see robust demand for new aircraft, as indicated by the impressive backlogs and plans for facility expansion by many of our OEMs. Our constraints... #NAFA #AviationNews #AviationLovers #Aviation #BusinessAviation #PrivateAviation

The latest trends in aircraft values and lease rates ✈️💼 IBA's February 2024 update on narrowbody and widebody aircraft provides valuable insights into the current dynamics affecting the aviation asset market, crucial for investors, lessors, and operators. Click here to read more: https://lnkd.in/epqTtR7z #AircraftValues #LeaseRates #MarketUpdate #Aviation #CommercialAviation #Airlines #AviationData #AircraftData #AviationIntelligence

More than 20% of Wizz Air’s fleet is grounded due to Pratt & Whitney GTF engine issues. Here’s how the airline is coping and where the grounded aircraft are stored. https://lnkd.in/g2sT3aWj

📈 Market Insights: Preowned Business Aircraft Transactions The preowned aircraft market showed stability as inventory levels grew: 🛩️ New preowned public listings increased by 13.3% YOY. 🛩️ Aircraft aged 13+ years accounted for 69.6% of new listings at the end of the quarter. 🛩️ Total aircraft available for sale reached 7.8% of the global fleet as of October 31—still below the decade average of 10%. Market shifts from a seller’s market to a more neutral state as inventory rises. While values for older aircraft (13+ years) decreased by 4.4%, newer aircraft values saw a slight uptick of 0.8%. This evolving market offers unique opportunities for both buyers and sellers. 📊 #BusinessAviation #MarketTrends #PreownedAircraft #JETRON https://lnkd.in/egZ9MYzu