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Editorial: The forgotten winner

17 May 2010

The Continental and United airlines merger is good for airlines and secondary aircraft investors and could force aircraft values to drop.

Read more: Continental United merger secondary aircraft investors aircraft values New York Airfinance Conference 2010

The merger between Continental and United is good for US airlines. They will be able to reduce capacity and start to improve their fleets with new deliveries. But it is also good for secondary aircraft investors.

This could be the event that forces aircraft values to drop. At the New York Airfinance conference, Klaus Heinneman noted that aircraft prices have not been distressed. He added that the distressed aircraft prices that the industry was expecting in 2009 never really came. Actually, there were very few bargains out there.

With assets...


Quote

"A lot of people hoped these proposals would die under their own weight"

Michael Inglese, chief financial officer, Aircastle on the proposed new accounting standards

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