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Old 6th April 2002 | 20:17
  #27 (permalink)  
tinyrice
 
Joined: Aug 2001
Posts: 147
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From: Minneapolis, MN,USA.
The 727-200 in its various guises will be around for a while I think. The cost of replacing it, especially in low margin freight operations will make it difficult for organizations to trade up to the 757 or 767 yet. There's so many of them out there, especially those that haven't been depreciated off airline books that it will make sense, at least in the short term to trade in older junkers for younger junkers. Banks will prefer to have a low performaing asset over a non-performing asset so theres still value in trading in aircraft with a high corrosion debt for something newer. Same goes for engines. A JT8D overhauls for $1.2 to $1.8M, but those costs can be mitigated by buying low time modules instead of paying for expensive overhauls. The mix might change, especially in Europe and the USA, but the aggregate might not change that much while you can lease them for $75,000 month. Besides - I like them...............
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