Aircraft & Engine Leasing in the Middle East is becoming an attractive area for investment. The article tracks its development and highlights its potential.

1. ISSUE SEVEN MARCH/APRIL 2012
THE LEADING GLOBAL PUBLICATION FOR OPERATORS OF AND INVESTORS IN AIRCRAFT AND ENGINES
Investing in engines
Crackdown on OEM control?
The demographic problem
w w w. a v i a t i o n n e w s - o n l i n e . c o m

2. EDITOR’S LETTER
STILL DANCING
Chuck Prince, chief of Citigroup, famously said that if the music is still playing, you
have to keep dancing. Although he was referring to banks before the 2008 crash, the
same could be attributed to original equipment manufacturers today. The US Federal
Aviation Administration (FAA) is poised to clamp down on engine OEMs seeking to
control the aftermarket – see the FAA circular dated March 23 regarding its policy
statement on inappropriate restriction of the use and availability on OEM data. Before
the FAA and potentially the European Commission take more forceful action, indus-
try sources say OEMs are seeking to control even more of the aftermarket with their
new crop of engines, by securing operators into fleet-hour agreements (FHAs). This
is a savvy move by the OEMs, and one no doubt applauded by their shareholders, but
it effectively cuts engine lessors out of the market for new engines as they would be
ISSUE TWO, VOLUME TWO
March/April 2012
unable to demand maintenance reserves for those engines under FHAs. This situation
is not a new concern – this magazine published an article on this issue last year – but
EDITORIAL TEAM
the action is ramping up as OEM strategies become clearer and lessors are increasingly
Victoria Tozer-Pennington
victoria@aviationnews-online.com pushed out of the market. See pages 16-29 for more on this important issue, which has
the potential to transform the leasing sector and aftermarket.
Philip Tozer-Pennington
Soaring fuel bills are crippling airlines around the world, while fuel hedges are not
philipt@aviationnews-online.com
performing as hoped due to the recent volatility of oil prices. Still, most airlines agree
Kaleyesus Bekele
partial hedging of fuel cost is an essential strategy in managing operating expenses.
kaleyesus@aviationnews-online.com
See the results from an expansive survey of airlines about their hedging strategies and
SUBSCRIPTIONS motivations conducted by Mercatus Energy Advisors on pages 32-35.
Annual subscription:
Ethiopian Airlines is one such airline feeling the pain of the high cost of oil, and it has
£29 (UK/EMEA/US/Canada)
£42 (Rest of the world)
been working with its employees to make cost savings to ensure the airline is kept on a
firm footing with regard to its expansion plans. African editor Kaleyesus Bekele talks to
Subscription enquiries to:
Tewolde Gebremariam, chief executive of Ethiopian Airlines on pages 56-59.
subscriptions@aviationnews-online.com
Looking east, this issue of Airline Economics also highlights developments in China
ADVERTISING SALES
and its bid to develop its own aircraft manufacturing industry (pages 44-47). We also
John Pennington
speak to Norman Liu, CEO of GECAS, about why the aircraft lessor remains the world’s
john@aviationnews-online.com
number one lessor, according to the 2012 Aviation 100 poll results.
Philip Tozer
We hope you enjoy these and the many other features and news analysis pieces in
philipt@aviationnews-online.com
this month’s issue. As always, if you have any ideas about future articles or comments
PRODUCTION AND ONLINE on any of the issues raised, please do not hesitate to get in touch.
Dino D’Amore
dino@aviationnews-online.com
Kathy Alys and Jo Gunston, subeditors
Cover work by Martin Pope
DIGITAL ISSUE
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www.airlineeconomics.co Airline Economics March/April 2012 1

3. MIDDLE EAST
Lease in the
Middle East
Aircraft and engine leasing in the Middle East is fast
becoming an attractive area for investment. Monis Hasan
tracks its development and highlights its potential
W
ith many produc- aircraft, lessors can offer airlines an advantage in the form of equity support
tion slots for new attractive mix of lease maturities and through their respective governments.
aircraft from Air- structured payment programmes with As Emirates, Qatar Airways and Etihad
bus and Boeing predictable operational cost require- show, government equity investment can
sold out to 2015 and ments. Fuel prices are high, and capital still have an impact on today’s market
some even until 2020, leasing aircraft is markets will continue to be difficult this structure. For these airlines, government
becoming essential for airlines seeking year and next, so lessors are becoming a investment has provided a huge influence
to expand their fleets. Carriers in the leading choice for sale/leaseback deals or in their development and will continue to
Middle East are rapidly expanding, and as direct suppliers for airlines that do not do so. When the government is the sole
the substantial growth in air traffic in the have financing or do not have a near-term shareholder, it provides access to aircraft
region offers lucrative opportunities for order book to replace older aircraft. finance at favourable terms. Addition-
aircraft and engine lessors to expand cli- Access to capital in today’s market ally, these airlines also have had access to
ent relationships, while also spreading constitutes a material barrier to entry export credit facilities from both the US
their portfolio risk. into the industry or expansion. Yet air- Export-Import Bank and the European
Given the demand for different lines in the Middle East have a unique export credit agencies.
60 Airline Economics March/April 2012 www.airlineeconomics.com

4. MIDDLE EAST
TABLE 1: TOP 30 OWNERS OF
AACO-REGISTERED AIRCRAFT
Owner Aircraft
count
Saudi Arabian Airlines 110
EgyptAir 59
Air Algerie 52
GECAS 52
Qatar Airways 47
ILFC 43
Royal Air Maroc 37
Emirates 36
Tunisair 32
Syrian Arab Airlines 26
Libyan Airlines 19
Kuwait Airways 17
Middle East Airlines 16
ALAFCO 15
Etihad Airways 14
The CIT Group Inc 14
EgyptAir Express 12
Gulf Air 12
Oman Air 12
Yemenia 12
Afriqiyah Airways 11
DAE Capital 11
Government of Kuwait 10
RAM Leasing Ltd 9
Waha Leasing 9
Air Arabia 8
BOC Aviation 8
Credit Agricole CIB 8
Pembroke Group Ltd 8
Hong Kong Aviation Capital 7
Aircraft and engine financing Aircraft and engine financing in the East include not just airlines but major
Middle East has matured and become lessors, as shown in Table 1. The largest
in the Middle East has matured much more sophisticated. Aircraft and lessors in the region include Gecas, ILFC,
and become much more engine leasing has grown substantially Alafco, CIT Group, DAE Capital, RAM
in the region, and has fostered the cre- Leasing and Waha Capital.
sophisticated. Leasing has ation of many regionally based aircraft Table 2 shows the commercial aircraft
grown substantially in the and engine lessors. In the Middle East, fleet of AACO airlines with a breakdown
Kuwaiti lessor Alafco is emerging as a between owned and operating lease air-
region, and has fostered the big player, with a fleet of 44 aircraft. DAE craft. There are 942 aircraft registered,
creation of many regionally Capital has a 41-aircraft portfolio and with 34% on operating leases. This is in
based aircraft and engine Abu Dhabi-based Waha Leasing, previ- line with the global aircraft leasing per-
ously called Oasis International Leasing, centage of between 35% and 40% and
lessors has 24 aircraft in its portfolio. The top 30 shows that the Middle East carriers are
owners of Arab Air Carriers Organization fairly advanced in their leasing practices.
(AACO) registered aircraft in the Middle Emirates Airline, with a fleet of 162, has
www.airlineeconomics.com Airline Economics March/April 2012 61

5. MIDDLE EAST
TABLE 2: AACO AIRCRAFT FLEET AIRLINES: OWNED AND LEASED
Airline Total Owned Operating Lease %
Leased
Emirates Airline 162 55 107 66%
Saudi Arabian Airlines 138 110 28 20%
Qatar Airways 103 62 41 40%
EgyptAir 65 59 6 9%
Etihad Airways 59 39 20 34%
Royal Air Maroc 58 44 14 24%
Air Algerie 52 52 0%
Gulf Air 35 14 21 60%
Royal Jordanian 35 8 27 77%
Tunisair 32 32 0%
Kuwait Airways 27 17 10 37%
Syrian Arab Airlines 27 26 1 4%
Oman Air 26 15 11 42%
Air Arabia 25 8 17 68%
Libyan Airlines 20 19 1 5%
Middle East Airlines 17 17 0%
Yemenia 14 12 2 14%
Afriqiyah Airways 12 11 1 8%
EgyptAir Express 12 12 0%
Iraqi Airways 10 0 10 100%
Sudan Airways 9 7 2 22%
Felix Airways 4 2 2 50%
Total 942 621 321 34%
leased 107 of its aircraft, while Saudi Ara- The more limited customer
bian Airlines, which has a fleet of 138,
leases only 28 aircraft. base of the widebody aircraft
Alafco, DAE Capital and Waha Leas- makes these assets a little
ing are the big three aircraft lessors based
in the Middle East. Table 3 shows their less liquid than narrowbody
aircraft portfolios. Of the three, Alafco is aircraft. Alafco, like any lessor,
the biggest, with 44 aircraft in its portfolio
and plans to double its fleet in the next five
wants to move its high-value
years. The company was initially estab- assets quickly and so is more
lished by Kuwait Airways Corporation. It focused on narrowbody types
has traditionally invested in narrowbody
aircraft such as the A320 and the 737, and liner aircraft. Over the next five years, the
this will continue to be its strategy going company plans to own 100 aircraft with
forward. It also placed an order for 50 an average age of six to seven years. At the
A320neo aircraft at the Dubai Air Show same time, it is also evaluating new aircraft
2011. The more limited customer base of products from other manufacturers such
the widebody aircraft makes these assets a as Bombardier and Embraer. The lessor
little less liquid than narrowbody aircraft. has also expanded its fleet through a num-
Alafco, like any lessor, wants to move its ber of sale-and-leaseback transactions
high-value assets quickly and therefore is with various airlines.
more focused on narrowbody types. How- DAE Capital is the second biggest les-
ever, it made an exception in 2009 when sor in the region. It initially had plans
the company ordered 22 of 787 Dream- to be the biggest leasing company in the
62 Airline Economics March/April 2012 www.airlineeconomics.com

6. MIDDLE EAST
TABLE 3: PORTFOLIOS OF TOP 3 LESSORS IN MIDDLE EAST
Operator Type Aircraft count
Air Europa 737 2
Alafco A320 1
Anadolu Jet 737 4
Caribbean Airlines 737 1
China Eastern Airlines 737 1
China Eastern Airlines A320 1
China Southern Airlines 777 2
Ethiopian Airlines 737 4
ALAFCO Malaysia Airlines 777 1
Okay Airways 737 2
Olympic Air A320 4
Royal Jordanian A320 2
Saudi Arabian Airlines A320 13
Sky Airlines 737 2
Transaero Airlines 777 1
Turkish Airlines 737 1
Vietjet A320 2
TOTAL 44
Anadolu Jet 737 2
DAE Capital 737 1
easyJet A319 4
Emirates 777 3
Emirates A330 8
Garuda Indonesia 737 8
DAE CAPTIAL
IndiGo A320 3
Kingfisher Airlines A330 3
Niki A320 1
Philippine Airlines A319 2
Spirit Airlines A319 1
T'way Airlines 737 1
Virgin Australia 737 2
Wizz Air A320 2
TOTAL 41
Aeroflot-Russian Airlines A330 1
Air Canada A321 1
Air Mekong CRJ 4
Emirates A340 2
Etihad Airways A330 6
WAHA LEASING
Iran Air A320 1
Jazz Air CRJ 1
Malaysia Airlines 777 2
Qatar Airways A330 1
RAK Airways 737 1
Singapore Airlines A330 2
Sriwijaya Air 737 1
Wind Jet A320 1
TOTAL 24
www.airlineeconomics.com Airline Economics March/April 2012 63

7. MIDDLE EAST
TABLE 4: AACO AIRCRAFT TYPE – OWNED VS LEASED In 2011, there was some
Aircraft type Operating Owned Total Lease % shrinkage in the Middle East
lease
BOEING market, which has affected
707 2 2 0% leasing. Aircraft lessors are
727 3 3 0% still placing aircraft in the
737 23 92 115 20%
region but at much lower
747 2 21 23 9%
767 5 4 9 56%
lease rates
777 111 58 169 66% Middle East but financing from its par-
AIRBUS ent company has been an issue for DAE,
which cancelled its entire order book of
A300 2 2 0%
Airbus and Boeing aircraft in June and
A300-600 4 13 17 24%
July 2011 except for a few Boeing 777 and
A310 1 10 11 9% 747-8F freighters, which it will now lease
A319 10 8 18 56% to Emirates Airline. The company still has
A320 74 99 173 43% 41 aircraft in its leased portfolio, as seen in
A321 12 25 37 32% Table 3, and although it has scaled down its
A330 35 96 131 27%
ambitions, it still ranks as one of the largest
lessors in the region.
A340 20 31 51 39%
Waha Leasing is part of the Waha Capi-
A380 2 18 20 10% tal group in Abu Dhabi and previously was
MCDONNELL DOUGLAS known as Oasis Leasing International. It,
MD-11 4 4 0% too, has big plans for growth. Its current
MD-90 29 29 0% portfolio stands at 21 aircraft. In 2009, it
Embraer purchased a 50% stake in Aerventure, a
Dutch aircraft leasing company with 50
125 1 1 0%
A320 aircraft on lease and on order com-
170 2 27 29 7% bined. It also clearly believes in the future
175 1 4 5 20% growth of the aircraft leasing business and
190 2 0 2 100% is investing for growth.
195 3 2 5 60% A look at Table 1 shows the presence of
BOMBARDIER major lessors such as Gecas, ILFC, CIT
Group, RAM Leasing, BOC Aviation as
C-130 1 1 0%
major aircraft lessors in the Middle East.
CL600 1 0 1 100% Many of these big lessors do not have
CRJ 8 10 18 44% an office in the Middle East. Gecas is an
DHC6 4 4 0% exception, with an office in Dubai.
DHC8 3 3 0% A look at the most popular leased air-
craft in the Middle East shows the 777
ATR
(with 111 aircraft) and the A320 (with 74)
ATR42 6 6 0% to be the clear favourites. Table 3 shows
ATR72 14 14 0% a breakdown of the aircraft types, owned
Others and leased with AACO carriers. Narrow-
TU-134 4 4 0% bodies such as A320s and 737s continue to
YAK-40 6 6 0% the most popular aircraft types with lessors
in the Middle East. The 111 777 aircraft is
IL-76 4 4 0%
in large part due to Emirates leasing 81 of
Fokker 27 7 7 0% that type. Larger aircraft such as the 777
Fokker 50 4 4 0% and the A380 are more difficult to place for
Gulfstream II 1 1 0% lessors, and are rarely bought for leasing
Gulfstream IV 1 0 1 100% purposes. Lessors only acquire the aircraft
Gulfstream V 3 0 3 100% types via sale-leaseback transactions.
In 2011, there was some shrinkage
Dassault Falcon 1 2 3 33%
in the Middle East market, which has
King Air 6 6 0%
affected leasing. Aircraft lessors are still
TOTAL 321 621 942 34% placing aircraft in the region but at much
64 Airline Economics March/April 2012 www.airlineeconomics.com

8. MIDDLE EAST
TABLE 5: AACO ENGINE FLEET – OWNED AND LEASED sector might be reducing their aviation
Airline Number of Owned Operating % leased
finance activity, but German, Asian, Aus-
engines leased tralian and North American banks will
continue to provide loan financing for US
Emirates 400 164 236 59%
dollar aircraft loans. Even so, the amount
Saudi Arabian Airlines 316 260 56 18%
of aircraft finance availability is decreasing
Qatar Airways 214 132 82 38% at the same time as aircraft deliveries are
EgyptAir 136 124 12 9% increasing to record levels – aircraft les-
Etihad Airways 140 100 40 29% sors could pick up a lot of business over the
Royal Air Maroc 118 90 28 24% next few years, but only so long as they can
secure their own funding arrangements.
Air Algerie 106 106 0%
Meanwhile, engine leasing is also
Tunisair 64 64 0%
increasing in the Middle East, and is
Gulf Air 78 28 50 64% providing a practical and cost-effective
Kuwait Airways 68 42 26 38% solution to the spare engine problem.
Royal Jordanian 78 16 62 79% This is a commonsense approach by
Syrian Arab Airlines 75 72 3 4% airlines to protect their bottom line
by avoiding the extra capital of spare
Oman Air 52 30 22 42%
engines on their balance sheets, which
Air Arabia 50 16 34 68%
is very high. By leasing engines, airlines
Libyan Airlines 43 41 2 5% can release that liquidity, and many
Middle East Airlines 34 34 0% engine lessors offer flexible options of
Yemenia 29 25 4 14% short-, medium- and long-term leases. It
Afriqiyah Airways 26 22 4 15% is much cheaper for the airline, as it pays
EgyptAir Express 24 24 0% only a small standby charge for availabil-
ity and then for actual use of the engine.
Iraqi Airways 22 0 22 100%
However, engine leasing can be challeng-
Sudan Airways 20 16 4 20% ing and technical. Only the larger players
Felix Airways 8 4 4 50% with the technical expertise have entered
Total 2,101 1,410 691 33% into it, such as the big three engine origi-
nal equipment manufacturers and big
players such as ELFC and Gecas. Also,
TABLE 6: ENGINE MANUFACTURERS – OWNED VS LEASED Mubadala Aerospace in Abu Dhabi has
Manufacturer Total engines Owned Operating Leased % established the region’s first engine leas-
leased ing company, Sanad Aero Solutions.
GE 576 322 254 44% The region has a large new aircraft
CFM 574 348 226 39% order portfolio, along with a spare engines
RR 414 308 106 26% backlog, and a large portion of these will
be financed through sale-and-leaseback
IAE 266 186 80 30%
agreements. The market size for spare
P&W 137 123 14 10% engines at Middle East carriers can be
Engine Alliance 80 72 8 10% estimated by counting the various aircraft
Aviadvigatel 24 24 0% fleet and order sizes. Sanad Aero Solu-
Ivchenko Progress 18 18 0% tions estimates the global spare engines
Garrett 8 5 3 38% and components market in which it oper-
ates to be as high as $35 billion and, with
Allison 4 4 0%
forecasts of a further 12,000 new aircraft
Total 2,101 1,410 691 33% entering service by 2020, airlines would
have to find $18 billion to support their
lower lease rates. The total bill for deliv- Engine leasing is also new spare engines and components.
eries scheduled this year will rise to $95 Table 5 shows the commercial engines
billion and reach $106 billion in 2013, increasing in the Middle East, fleet in operation with AACO airlines in
according to Boeing’s forecast. With the and is providing a practical the Middle East, which gives an idea about
eurozone crisis spreading, established how many spare engines could be in use.
European aviation financiers are pulling
and cost-effective solution to With a total of 2,101 engines in service as
back from the market due to a lack of capi- the spare engine problem of December 2011, 5% spares would be 105
tal and liquidity. French banks that have engines and 10% spares would be 210. Of
historically been lending to the airline these 2,101 commercial engines in service,
www.airlineeconomics.com Airline Economics March/April 2012 65

9. MIDDLE EAST
TABLE 7: COMMERCIAL ENGINE FLEET AACO AIRLINES – OWNED AND LEASED
Airline (Fleet) Engine Total engines Owned Operating Lease %
manufacturer leased
Emirates (162) CFM 32 0 32 100%
Engine Alliance 80 72 8 10%
GE 152 30 122 80%
RR 136 62 74 54%
Saudi Arabian Airlines (138) CFM 82 26 56 68%
GE 104 104
IAE 58 58
RR 72 72
Qatar Airways (103) GE 116 58 58 50%
IAE 76 52 24 32%
P&W 6 6
RR 16 16
EgyptAir (65) CFM 54 54
GE 16 4 12 75%
IAE 34 34
P&W 12 12
RR 20 20
Etihad Airways (59) CFM 2 2
GE 18 8 10 56%
IAE 28 2 26 93%
RR 92 88 4 4%
Royal Air Maroc (56) CFM 96 76 20 21%
GE 14 6 8 57%
P&W 8 8
Air Algerie (52) Allison 4 4
CFM 44 44
GE 16 16
P&W 28 28
RR 14 14
Tunisair (32) CFM 58 58
GE 6 6
Gulf Air (31) CFM 50 16 34 68%
GE 8 0 8 100%
RR 20 12 8 40%
Kuwait Airways (27) RR 6 0 6 100%
CFM 26 22 4 15%
GE 26 20 6 23%
P&W 2 0 2 100%
RR 8 0 8 100%
Royal Jordanian (27) CFM 16 0 16 100%
GE 24 16 8 33%
IAE 30 0 30 100%
P&W 6 0 6 100%
RR 2 0 2 100%
Syrian Arab Airlines (27) Aviadvigatel Perm Motors 24 24
Garrett 3 0 3 100%
IAE 12 12
Ivchenko Progress 18 18
P&W 18 18
Oman Air (26) CFM 30 8 22 73%
GE 4 4
P&W 4 4
RR 14 14
Air Arabia (25) CFM 50 16 34 68%
Libyan Airlines (19) CFM 8 8
Garrett 3 3
GE 18 18
P&W 12 10 2 17%
RR 2 2
Middle East Airlines (17) Garrett 2 2
IAE 24 24
RR 8 8
Yemenia (14) IAE 4 4
P&W 21 21
RR 4 0 4 100%
Afriqiyah Airways (12) CFM 22 18 4 18%
GE 4 4
EgyptAir Express (12) GE 24 24
Iraqi Airways (10) CFM 4 0 4 100%
GE 18 0 18 100%
Sudan Airways (9) P&W 20 16 4 20%
Felix Airways (2) GE 8 4 4 50%
66 Airline Economics March/April 2012 www.airlineeconomics.com

10. MIDDLE EAST
33% are leased by the airlines versus 67% The growth of regional aircraft airlines clearly see the value in engine leas-
airline-owned. ing. Sanad’s portfolio consists of 12 spare
Engines are leased to improve the and engine leasing companies engines with Air Berlin (on SLB) and a
use of these expensive spare assets. By shows the Middle East is total of 11 spare engines with Etihad Air-
entering a pooling arrangement with a ways, including two future deliveries.
lessor, airlines and lessors can increase
maturing in the services Table 6 provides numbers for active
the percentage use of an engine, making offered for commercial aircraft engines by OEMs and the leased-ver-
more revenue by flying it on an aircraft. sus-owned breakdown of those engine
If an airline is aware, through mainte-
financing. Access to capital for numbers. GE, CFM and Rolls Royce
nance planning, that it will need spare aircraft will be a major issue dominate as engine OEMs in the region. A
engines, it will manage demand by leas- for the growth plans of the more detailed breakdown of engine OEM
ing them through an engine lessor. Ideally, by airline with owned and leased details is
an airline would not want to keep spare provided in Table 7 for all AACO airlines.
engines on standby for their maintenance The growth of regional aircraft and
demands but would rather sign with up an nent solutions. Clearly, they believe the engine leasing companies shows the Mid-
engine lessor that could provide a broad integrated approach of bundling spares dle East is maturing in the services offered
network of engines across its routes or with MRO services is a winner and a cor- for commercial aircraft financing. Access
an engine pooling solution to help it with nerstone to growth. to capital for aircraft will be a major issue
its needs at its base. Another interesting Recently, Sanad and another engine for the growth plans of the region’s airlines.
approach is to provide an engine leasing lessor, ELFC, signed a sale-and-leaseback Despite the challenge of aircraft financing
pool of spares and components along with agreement worth $367 million with Eti- worldwide, the region will continue to find
maintenance repair and overhaul (MRO) had Airways to finance 16 in-service spare finance albeit at a higher capital or inter-
services. Mubadala’s MRO network com- engines and seven future spare engine est cost. The increased leasing practices of
prising SR Technics, Abu Dhabi Aircraft deliveries. Sanad will buy and lease back the AACO airlines and growth of leasing
Technology and Sanad offer those both for five GE90 and six Rolls Royce Trent 500 businesses point to the fact that financing
engines and components through their engines on a 10-year operating lease to might not be a material barrier to market
integrated engine and integrated compo- Etihad Airways. This does indicate that entry or expansion for this region.
www.airlineeconomics.com Airline Economics March/April 2012 67

11. DATA
COMMERCIAL AIRCRAFT CMVs AND LEASE RATES – 15TH March 2012
CMV ($M) Dry Lease rate ($m) Typical seating
Manufacturer Model Oldest change Newest change Oldest change Newest change (C+Y)
AIRBUS A300-600R 6.33 0.33 15.00 2.51 0.105 0.025 0.200 267
AIRBUS A310-200 1.85 2.40 0.070 0.100 210
AIRBUS A310-300 3.90 0.54 8.90 1.89 0.090 0.010 0.140 0.01 210
AIRBUS A318-100 14.00 0.21 24.50 2.63 0.130 0.030 0.200 0.03 108
AIRBUS A319-100 12.50 2.24 34.50 0.83 0.130 0.030 0.320 0.03 124
AIRBUS A320-200 5.50 0.07 40.00 1.53 0.065 0.055 0.350 150
AIRBUS A321-100 12.00 1.92 19.00 2.2 0.120 0.030 0.220 0.01 185
AIRBUS A321-200 21.00 5.40 49.00 0.5 0.200 0.030 0.380 0.05 185
AIRBUS A330-200 44.00 4.86 86.00 2.46 0.420 0.050 0.850 0.25 250
AIRBUS A330-200F 90.00 4.44 96.40 0.05 0.750 0.020 0.800 0.06
AIRBUS A330-300 27.00 2.70 97.00 1.84 0.280 0.190 0.900 0.24 300
AIRBUS A340-200 15.00 0.86 20.00 2.09 0.300 0.070 0.350 0.64 280
AIRBUS A340-300 18.00 0.97 70.00 2.41 0.230 0.020 0.600 0.09 295
AIRBUS A340-500 55.00 2.82 97.00 14.94 0.490 0.010 0.850 0.9 280
AIRBUS A340-600 58.00 5.33 104.00 8.55 0.530 0.030 0.920 0.15 350
AIRBUS A380-800 145.00 14.76 195.00 15 1.450 0.350 1.850 0.42 525
BOEING 717-200 7.75 11.50 3.1 0.100 0.150 0.01 117
BOEING 737-300 2.00 0.97 6.80 0.94 0.040 0.040 0.110 0.03 134
BOEING 737-400 4.00 0.39 8.00 1.08 0.075 0.050 0.120 0.01 144
BOEING 737-500 2.50 1.09 6.00 1.57 0.050 0.090 0.02 104
BOEING 737-600 11.00 3.03 20.00 2.75 0.135 0.015 0.200 103
BOEING 737-700 16.20 1.31 35.75 2.68 0.160 0.050 0.330 0.01 134
BOEING 737-800 20.00 1.10 44.50 5.07 0.220 0.030 0.360 0.04 160
BOEING 737-900 19.80 0.70 24.00 0.11 0.170 0.040 0.230 0.01 180
BOEING 737-900ER 33.50 3.52 47.40 3.85 0.320 0.050 0.400 0.02 215
BOEING 747-400 18.00 0.69 59.50 2.25 0.300 0.010 0.670 0.01 412
BOEING 747-8F 185.00 9.25 1.400 0.050 1.550 0.15 188
BOEING 757-200 6.00 0.20 22.50 2.13 0.100 0.230 0.04 158
BOEING 767-200ER 4.00 0.25 14.50 2.25 0.120 0.040 0.280 0.09 190
BOEING 767-300ER 11.00 2.28 61.50 9.41 0.180 0.050 0.500 0.02 313
BOEING 767-300F 30.00 0.12 73.52 0.86 0.340 0.810 0.580 0.01
BOEING 777-200 24.00 57.00 0.350 0.450 313
BOEING 777-200ER 47.70 4.72 118.00 9.03 0.500 0.080 0.990 0.13 313
BOEING 777-200LR 91.00 11.71 136.50 3.28 0.800 0.080 1.200 0.25 313
BOEING 777F 140.00 10.80 160.00 2.4 1.200 0.020 1.400 0.15
BOEING 777-300 47.75 3.38 78.00 7.64 0.450 0.120 0.700 0.06 382
BOEING 777-300ER 96.50 6.33 155.00 0.3 0.850 0.500 1.400 0.35 350
BOEING 787-8 105.00 12.40 110.00 7.44 0.950 0.150 1.100 0.21 243
BOEING MD MD11 10.00 3.79 17.00 2.31 0.150 0.100 0.240 0.07 285
BOEING MD MD81 0.50 1.00 1.20 0.4 0.025 0.005 0.035 0.005 144
BOEING MD MD82 0.70 0.93 2.20 0.03 0.025 0.050 0.048 0.008 144
BOEING MD MD83 1.30 0.05 3.25 0.11 0.040 0.100 0.060 0.02 144
BOEING MD MD87 1.70 0.20 2.20 0.030 0.042 0.001 109
BOEING MD MD88 1.90 0.41 3.20 0.31 0.400 0.050 0.01 144
BOEING MD MD90 5.00 0.98 6.00 0.53 0.080 0.100 0.01 144
BOMBARDIER Q400 10.00 20.00 0.125 0.200 70
EMBRAER E190 LR 20.00 30.20 0.200 0.270 98
EMBRAER E195 LR 22.90 31.70 0.210 0.290 108
AE Research.
ATR ATR 42-500 4.30 14.30 0.065 0.135 48
ATR ATR 72-500 6.75 18.10 0.085 0.180 70
ATR ATR 42-600 14.95 0.145 48
ATR ATR 72-600 19.20 0.190 70
Note: These values are based on the lowest prices seen in market of late showing change over six months from 01/10/11 to 01/03/12.
The change in red represents a decrease while green is an increase from the last known lowest price paid. These values shown here in this issue are
now market averages. They are in fact the lowest known prices paid on a deal involving each type. Where no change is shown we have either not been
able to gain price on a transaction during either this period or the last six months ago. The value changes on some aircraft represent manufacturer
reductions due to reporations on deals where we know of pricing. The general trend is one of lower prices from six months ago, mainly during the last
calender quarter of 2011, as always it is very important to remember that the rates listed are set by the most competitive deal in the market.
68 Airline Economics March/April 2012 www.airlineeconomics.com