Four engine widebodies suffer value loss amid crisis: AFJ North America 2020 | News | Airfinance Journal

Four engine widebodies suffer value loss amid crisis: AFJ North America 2020

The Boeing 747, Airbus A340s and A380s are the widebody types that IBA has made the “biggest” and most “significant” value adjustments to as a result of the Covid-19 crisis, head of valuations Mike Yeomans says.

Speaking at the Airfinance Journal North America 2020 virtual conference, Yeomans says that the fall in value of the 747 was already under way before the crisis, but the decision of operators of the type to accelerate their retirement plans has also accelerated value pressure.

He says the A340 type is also an aircraft that was facing challenges before the crisis, with the A340-600 fleet down 60%.

The A380 production has now been ceased and existing operators are slimming down their fleet or removing the type entirely, he notes.

“We may see some of those aircraft come back but it’s really taken a big hit in the near term,” Yeomans says.

He sees little opportunity for the widebody in the secondary market due to infrastructure requirements needed to support such a large aircraft.

 

Transaction SnapshotBoeing | Bonds issuance | 05-20 | $25bn

Financial Close:
04/05/2020
Value:
$25,000.00m USD
Full Details

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