A SHORTAGE of large passenger aircraft is pushing up the value of old jumbo jets and sending the cost of renting big planes higher, aircraft valuers say.
Turmoil at Airbus over delays in the delivery of the A380 superjumbo aircraft and confusion over the future of the company’s plans for the A350, another proposed wide-bodied jet, could further boost the tight market.
According to the Aircraft Value Analysis Company, the monthly rental of a Boeing 767-300 aircraft has almost doubled in three years. Rentals fell after the 9/11 terrorist attacks in the United States in 2001. This was compounded by the Sars virus scare in 2003.
However, the recovery in traffic has been pronounced and led to a surge in aircraft orders, notably for wide-bodied jets, such as the A380 and Boeing’s 787 Dreamliner.
“It is good news for leasing companies,” Paul Leighton, managing director of Aircraft Value Analysis Company, said. “If you are selling a long-term lease for wide-bodied aircraft, this is probably the peak of the market.”
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Uncertainty over delivery dates for A380s could force some operators, such as Singapore Airlines, to seek to renegotiate their lease arrangements, extending the use of 747 aircraft that otherwise might be heading for the second-hand market.
The aviation “park” of unused wide-bodied jets has shrunk from its peak in 2003, but aircraft experts caution that the market is volatile and current levels of demand could be shaken by further increases in fuel costs.
Chris Tarry, an aviation consultant, is sceptical about forecasts of uninterrupted expansion at double the rate of economic growth. “We are not at the start of some golden age. If oil rises to $100 per barrel, everything will grind to a halt,” he said.