Irish leasing company Avolon has endeavored to dispel what it characterizes as some common misperceptions about the market implications of the introduction of the Boeing 737 Max and Airbus A320Neo in a new report titled Transitioning to Neo and Max: An Investor’s Guide. Speaking last Monday on a conference call from Dublin, Avolon executives argued for the likelihood of an orderly and healthy transition from the Airbus A320ceo (current engine option) and 737NG to their re-engined counterparts,
Supply and demand
Attractive pricing persists on many popular models despite a continued tightening of inventory to its lowest level since peaking less than two years ago.
Activity in the used jet sector continues to thrust ahead as another year-over-year decline in inventory served to strengthen prices among a number of models and appears poised to continue. During the last two years the used inventory averaged a 155 net decline and stands at 1,730 as AIN goes to press, a figure it hasn’t seen in four years.