Go Back  PPRuNe Forums > Flight Deck Forums > Rumours & News
Reload this Page >

How much is a middle aged Airbus narrowbody worth

Rumours & News Reporting Points that may affect our jobs or lives as professional pilots. Also, items that may be of interest to professional pilots.

How much is a middle aged Airbus narrowbody worth

Old 2nd Jun 2018, 22:01
  #21 (permalink)  
 
Join Date: Mar 2017
Location: Martian
Posts: 101
Received 5 Likes on 3 Posts
Originally Posted by krismiler
At around 15 years old an A320 won't have much useful life left in it for passenger operators and there is no afterlife as a freighter like there is for the B767/757.

Fuel burn will be well above the current sharklet and neo versions, and dispatch reliability heads down hill which isn't acceptable to low cost operators with tight scheduling.

This basically limits options to parting it out or selling it to an airline in the Congo who keep flying it until it crashes into a village at the end of the runway whilst taking off grossly overloaded.
Market's a bit bigger then just the Congo....... Central and South America, for example.
packapoo is offline  
Old 3rd Jun 2018, 00:56
  #22 (permalink)  
 
Join Date: Jul 2010
Location: Asia
Posts: 1,534
Received 47 Likes on 29 Posts
Not correct, there are now P2F conversion programmes existing for the A320 and A321 aircraft.
Whilst the program might be there, I've never seen an A320 freighter, plenty of B737s but never an A320. There is a ready market for the B767/757 as MD11s and B727s get scrapped. Perhaps a shorter design life an greater complexity make them less attractive ?
krismiler is offline  
Old 3rd Jun 2018, 02:06
  #23 (permalink)  
 
Join Date: Mar 2001
Location: I wouldn't know.
Posts: 4,497
Likes: 0
Received 0 Likes on 0 Posts
There are always airlines, even in first world markets, interested in leasing older A320s as well. Lease rates go down a lot after the first 8 to 10 years. That said, for the leasing company it is probably more profitable to break it down for parts and sell it off.

And of course there are quite a few differences between the first 737-800 to the current ones. Different engines, although they can be swapped around (7B vs 7BE), more capable avionics and split scimitar winglets, to name just a few. Every aircraft evolves over its production life.
Denti is offline  
Old 3rd Jun 2018, 02:22
  #24 (permalink)  
 
Join Date: May 2004
Location: Москва/Ташкент
Age: 54
Posts: 922
Received 3 Likes on 3 Posts
A 1990 CFM equipped A320 (with fresh C check) may fetch only $6M US on the used market, in that case surely flogging the parts makes a lot more sense, was surprised they were so low priced.
flash8 is offline  
Old 3rd Jun 2018, 03:37
  #25 (permalink)  
 
Join Date: Jul 2007
Location: Auckland, NZ
Age: 79
Posts: 721
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by flash8
A 1990 CFM equipped A320 (with fresh C check) may fetch only $6M US on the used market, in that case surely flogging the parts makes a lot more sense, was surprised they were so low priced.
I'm wondering how the figures work out if you include the cost of dismantling the aircraft for parts, the costs of holding onto the Big Pile of Parts until they're all sold, and the costs of making a lot of separate sales. Does that make much difference?
FlightlessParrot is offline  
Old 3rd Jun 2018, 03:56
  #26 (permalink)  
 
Join Date: Feb 2007
Location: Cantberra
Posts: 68
Likes: 0
Received 1 Like on 1 Post
Originally Posted by Denti
There are always airlines, even in first world markets, interested in leasing older A320s as well. Lease rates go down a lot after the first 8 to 10 years. That said, for the leasing company it is probably more profitable to break it down for parts and sell it off.
I believe the first A320 leased by SkyWest for FIFO work in Western Australia was a 1993 build. Obviously the economics made some sense in this case as it was retained when they were taken over by Virgin Australia Regional Airlines in 2013.
Cleared Visual is offline  
Old 3rd Jun 2018, 06:51
  #27 (permalink)  
 
Join Date: Dec 2006
Location: The No Transgression Zone
Posts: 2,483
Received 5 Likes on 3 Posts
At those prices, I'll take two
Pugilistic Animus is offline  
Old 3rd Jun 2018, 07:55
  #28 (permalink)  
 
Join Date: Apr 2002
Location: HK
Posts: 50
Likes: 0
Received 0 Likes on 0 Posts
This has been true for some time. Very low interest rates mean that the price difference between leasing an old vs new aircraft isn't as big as it used to be. So once an aircraft is past its first lease, the bean counters at the leasing firm will do the sums to see if better to lease again, or break for spares. Some of the big boys own their own parts/ breaking firms.

Legacy airlines are more likely to own their own aircraft, so the maths for them is a bit different. So you see FSC airlines keeping aircraft longer than LCC. (plus they have their own in house maitenance arms to be kept busy)

Plus spare parts price >> parts sold as original equipment

There was a case where (I think )P&W didn't have a tight contract with a Japanese airline on reselling. The airline purchased extra engines as part of the deal, then as soon as they were delivered nroke them down, sold as spare parts, and made a nice little profit...
Freehills is offline  
Old 3rd Jun 2018, 09:20
  #29 (permalink)  
 
Join Date: Nov 2006
Location: Top Bunk
Posts: 232
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by flash8
A 1990 CFM equipped A320 (with fresh C check) may fetch only $6M US on the used market, in that case surely flogging the parts makes a lot more sense, was surprised they were so low priced.
That's how the bottom feeders in eastern EU work..They then wet lease west.......
45989 is offline  
Old 3rd Jun 2018, 10:33
  #30 (permalink)  
 
Join Date: Oct 2002
Location: London UK
Posts: 7,648
Likes: 0
Received 18 Likes on 15 Posts
There are many carriers which have made a significant business out of mid-life fleets. Take Jet2 in the UK, which built up a substantial fleet of 15-year old 737-300, 737-800 and 757. Only recently have they moved on to their first new fleet purchase of 737-800 from the manufacturer, but at the same time are still expanding their mid-life fleet further. The new and mid-life aircraft appear to be used turn-and-turn-about on comparable duties, and the dispatch reliability appears similar as well. It would be interesting to see the lease rates and maintenance costs.
WHBM is offline  
Old 3rd Jun 2018, 11:31
  #31 (permalink)  
 
Join Date: Jul 2010
Location: Asia
Posts: 1,534
Received 47 Likes on 29 Posts
Back in the old days, Cathay Pacific used to buy second hand aircraft and overhaul them because engineering in Hong Kong was cheap, they effectively got a new aircraft at a discounted price.

Freight aircraft generally have lower utilisation than passenger ones so ground time can be used for maintenance. Whilst fuel consumption may be higher, the much lower purchase price can offset this and lower flying hours reduces the total fuel bill. A B727 carries roughly the same as an A320 but burns twice as much fuel. When oil prices are low like they have been until quite recently, older aircraft get a stay of execution, once the price heads north again modern replacements make more sense.

For specialist roles such as engine test platforms and fire bombing, where utilisation is very low, an obsolete aircraft such as a B747SP or DC10 costing a few hundred thousand dollars is ideal as the higher fuel burn over the few hours it spends airborne is insignificant compared to the millions that would be tied up in a new model.
krismiler is offline  
Old 3rd Jun 2018, 12:07
  #32 (permalink)  
 
Join Date: Oct 2002
Location: London UK
Posts: 7,648
Likes: 0
Received 18 Likes on 15 Posts
Originally Posted by krismiler
For specialist roles such as engine test platforms and fire bombing, where utilisation is very low, an obsolete aircraft such as a B747SP or DC10 costing a few hundred thousand dollars is ideal as the higher fuel burn over the few hours it spends airborne is insignificant compared to the millions that would be tied up in a new model.
These can be real residual operations where you cannot get hull insurance either - fire bombing, operation into unlicensed strips in remote areas, etc. This is why old piston-engined large aircraft lasted so long on such missions, notwithstanding Avgas cost, although they are pretty much all gone now. MEA at Beirut carried on with 707 operations long after everyone else for the same reason.
WHBM is offline  
Old 3rd Jun 2018, 12:17
  #33 (permalink)  
 
Join Date: Aug 1999
Location: Hyeres, France
Posts: 1
Likes: 0
Received 0 Likes on 0 Posts
Not Airbus, but haven't Delta been buying older MDs for quite a few years now, then breaking them up themselves to provide 'cheaper' spares for their own, flying fleet ?
Hussar 54 is offline  
Old 4th Jun 2018, 01:17
  #34 (permalink)  
 
Join Date: Jul 2010
Location: Asia
Posts: 1,534
Received 47 Likes on 29 Posts
FEDEX never saw a DC10/MD11 that they didn't want.
krismiler is offline  
Old 4th Jun 2018, 08:44
  #35 (permalink)  
short flights long nights
 
Join Date: Aug 1999
Posts: 3,877
Received 154 Likes on 48 Posts
A better question would be... what is a second hand A380 is worth!!
SOPS is offline  
Old 4th Jun 2018, 09:22
  #36 (permalink)  
 
Join Date: Jan 2008
Location: The Smaller Antipode
Age: 89
Posts: 31
Received 17 Likes on 10 Posts
Can we delete the above time wasting person from the forum now mods?
Or show him where the OFF button is on his computer ?

No one is forced to read anything.
ExSp33db1rd is offline  
Old 4th Jun 2018, 18:02
  #37 (permalink)  
 
Join Date: Jul 2013
Location: Everett, WA
Age: 68
Posts: 4,392
Received 179 Likes on 87 Posts
Originally Posted by krismiler
FEDEX never saw a DC10/MD11 that they didn't want.
Not any more...
FedEx is gradually retiring their fleet of DC10/MD11s and replacing them with new production 767-300F.
tdracer is offline  
Old 4th Jun 2018, 18:34
  #38 (permalink)  
 
Join Date: Dec 2011
Location: UK
Posts: 964
Received 1 Like on 1 Post
Originally Posted by SOPS
A better question would be... what is a second hand A380 is worth!!
Not massively important I'd have said - most coming up lease end, the lessors will have done its money by the 12Y check.

Perfect Hajj airplane in its max config and I'd say a good ship for certain high yield, high volume routes (say LHR-North America, Middle East, Far East).

I'd say what EK have done though with their 100+ is pretty remarkable up against the economics. Just about profitable, but they have got several advantages over the market.
Dannyboy39 is offline  
Old 4th Jun 2018, 23:54
  #39 (permalink)  
 
Join Date: Jul 2010
Location: Asia
Posts: 1,534
Received 47 Likes on 29 Posts
Wet lease specialist, Hi Fly have announced that they will be operating two second hand A380s. It could be a good move as it’s a lot of aircraft for the money with values being depressed as no one else wants them. Whilst many airlines couldn’t justify full time use of an A380, it could fit in nicely for a few months of peak season work, and as peak times vary around the world it could be in continuous demand.

https://www.telegraph.co.uk/travel/n...sing-delivery/
krismiler is offline  
Old 5th Jun 2018, 02:40
  #40 (permalink)  
 
Join Date: Oct 1999
Location: Beyond the black stump!
Posts: 1,418
Received 15 Likes on 8 Posts
About this much!

Cyclic Hotline is offline  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.