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Monthly Special Aircraft Report - A321-200 May 2014
May 12, 2014 -

The Current Market - The current market demand for new Airbus A321-200 has remained strong over the last 12 months. With the global demand for air travel coming back, operators are finding the capabilities of the A321 very attractive which has led to the continued stability of the type in the current environment. Today, CV knows of only 11 aircraft available for sale and/or lease. Out of more than 826 aircraft built, 4 are currently in storage, which is less than 1% of the current fleet. It is CV’s opinion that these percentages are considered low for a single-aisle aircraft type that has been in production for over 20 years.

Current values and lease rates in today’s market have remained stable for new and newer aircraft. This trend continues to show some signs of stability due to the improving state of the industry which is expected to continue over the next 6-12 months. With some indications that the global economy may be improving and on its way to recovery, we see values and lease rates for this aircraft remaining stable over the next 12 months with a potential for a recovery thereafter. 

CV believes that the A321-200 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 rest of this decade.

The Competition

The A321 operates in the scheduled markets (typically 185 seats) and charter markets (220 seats high density), with its traditional rival, the Boeing 757- 200, now having ceased production. The A321 has the advantage of being part of a family, offsetting the 757’s higher seat count and longer range.

Boeing has now the 737-900ER to compete more closely, especially in the charter market, with the capability to carry 215 passengers. The A321-200 also looks a good longer-term prospect for freight conversion (joining the A320), once values fall to sufficient low levels; this is likely to be post 2015.

The Airbus A321NEO and Boeing 737MAX will most likely put some pressure on the existing A321 products in the second half of this decade but the magnitude of the potential impact this may have is yet to be determined. 

TEAM.Aero Community Members can access the Collateral Verifications company profile and members by clicking here

A downloadable PDF Report is available – please click here

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