The A330ceo is now in its replacement phase. Secondary market availability and storage are relatively high and the A330-200 in particular has been in oversupply for some time.
Powered by IBA.iQ, our advisory teams have seen lease rates soften in recent years. The wave of pre-GFC delivered aircraft have returned from their initial leases which has put downward pressure on rentals in the market.
When looking at the lease rental performance of the A330-200 model, the IBA.iQ Trends graph below clearly shows the decline in rates across the board for different vintages.
Comparing lease rate performance against other aircraft types quantifies opportunities and risks. The IBA.iQ Trends chart below tracks the lease rate performance of new and 12 year old A330-200 aircraft against a new example of the Boeing 787-8 and a used narrowbody A320-200 aircraft.
The A320-200 has recovered well since 2012, strengthening on a constant age basis for a 12 year old aircraft. When looking at a newer generation widebody aircraft in the form of a new delivery Boeing 787-8, lease rates have declined. Stronger competition to acquire new aircraft amongst lessors through sale leaseback transactions has driven lease rates down for new aircraft.
New A330-200 lease rates have softened, but it is the mature examples that have been worst affected.
When it comes to fleet data, aircraft valuations and market trend analysis, our up-to-date, comprehensive and accurate data platform InsightIQ is essential for future transaction due diligence and risk evaluation.
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Following on from last week's session where IBA presented their approach to valuations and lease rates, our panel take a deeper dive looking specifically at commonly traded aircraft types. Topics covered included; IBA's opinion on likely market performance in the near and long term, which assets types are more vulnerable and a 30 minute Q&A session with our panel. The webinar was chaired by Phil Seymour, an ISTAT Senior Appraiser Fellow and former ISTAT International Appraisers' Program Chairman. Phil was joined by Stuart Hatcher and Mike Yeomans - two of IBA's Senior ISTAT Appraisers, and David Archer, IBA's Senior Engine Analyst. Our senior ISTAT appraiser team also review the impact from Covid-19 on future asset performance for specific Narrowbody and Widebody aircraft. The slide deck is available to download here. If you have further questions please contact: Mike Yeomans
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