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Industry Downturn - Impact On Lease Rates  
User currently offlineAF022 From France, joined Dec 2003, 2288 posts, RR: 1
Posted (7 years 11 months 3 days 4 hours ago) and read 1854 times:

I keep reading here and in the news that airlines are shedding capacity - CO, UA, etc. With the recent bankruptcies - Eos, Silverjet, Maxjet, Aloha, Oasis HK - what is happening to lease prices?

I would guess that new, efficient aircraft like 777-300ER are holding up well, but what of older models like the 757, 767-200ER, 747-400 and 737 classics? Am I misreading things that prices must be tanking?

The 747-400 must be really having problems with lease rates. I think I read UA is grounding 7 of them, but with the industry the way it is what can they do with them? Speednews already has six listed newer than 1995 vintage. Must be another tough blow for airliens and their bottom line.

1 replies: All unread, jump to last
User currently offlineSrbmod From , joined Dec 1969, posts, RR:
Reply 1, posted (7 years 11 months 3 days 4 hours ago) and read 1834 times:

The rates on the 737 Classics are going to drop like a stone with United and Continental retiring a large number of them. If a startup airline was looking for a fleet or an existing 737-200 operator was looking to upgrade, the right time may be on the horizon. Then again, with the 737 Classics now becoming targets for cargo conversions to replace the 727 at some cargo airlines, you could see someone like FedEx or UPS picking some up at a cheap price.

The 757s, unless they are among the early ones off the line, stand a chance at being picked up by another airline (especially since some airlines are now using them on some Transatlantic services). The older ones could have a shot at being converted for cargo use, but then again some of the oldest 757s that were originally delivered to Eastern have already been scrapped.

The 747-400s will more than likely find themselves the targets for cargo conversion.

The 767-200ER is probably another cargo conversion candidate. While some 762s have been scrapped (mostly non ER versions), there definitely is a market for the 762ER as a cargo bird.

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