Monthly Special Aircraft Report - A320-200 January 2014
Jan 17, 2014
The current market demand for the Airbus A320-200 has started to stabilize in the last 3 months, especially for new or newer aircraft. Used aircraft demand still remains somewhat soft but should stabilize as long as demand continues to strengthen. Today, CV knows of at least 26 aircraft listed as available for sale and/or lease. Out of 3311 aircraft built, 109 are currently in storage, which is just over 3% of the fleet. It is CV’s opinion that these percentages are still considered reasonable for a single-aisle aircraft type that has been in production for 25 years.
Current values in today’s market have started to stabilize and even increase slightly for new aircraft. Used aircraft continue to be a challenge to place but this may change should the market demand improve in the near term. The increase in the production rate by Airbus may continue to have a negative impact on values and lease rates in the long term but the short term results may be less than anticipated due to the increased demand for the aircraft. This trend, which has started to show signs of stability due to the improving state of the industry, is expected to continue over the next 12 months. With some indications that the global economy may be improving in certain countries and on its way to a recovery, we see values and lease rates for this aircraft remaining stable over the next 12 months with a potential for a recovery thereafter.
In looking at the leasing market, this aircraft is now leasing for around $320,000 per month for new aircraft. Although this is a significant decrease from the peak of the cycle when the aircraft leased for well over $400,000 per month, it is an improvement over last year’s lease rates.
CV believes that the A320-200 with its quiet wide cabin, offering strong customer appeal, containerized cargo, commonality with other Airbus products, competitive choices of engines, fly-by-wire advantages, and being a part of a family of single-aisle aircraft, will keep this aircraft in good demand well through the foreseeable future. Our only concern may be with the newly launched Airbus A320 NEO, which may have some effect on future residual values of existing aircraft but this is still too early to tell how much of an impact this new type will have on the existing fleet.
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