| Airlines rely on hedging and newer jets to fight rising oil prices With oil prices rising strongly, the demand for new vintage aircraft and the need to recycle older planes will most likely rise. This will increase the demand of new planes and particularly those that offer genuine fuel advantages. Asset impairment takes centre stage as residual values come under pressure Aircraft values have fallen significantly for many older aircraft over the last two to three years. New factors such as the introduction of the NEO (New Engine Option) into the Airbus A320 family, the fastest selling ever commercial aircraft, and the Boeing 737-Max once delivered in the next 5-6 years may over time affect prices on existing aircraft. JOHN McCORMACK looks at the primary asset impairment considerations in the present market and puts forward an approach for impairment analysis. |
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'History shows that human ingenuity has always come up with financing sources and that aircraft for reasonable credits always attract finance' - Colm Barrington Aviation Finance editor KEN O'BRIEN interviews COLM BARRINGTON, CEO of quoted aircraft lessor FLY Leasing, and non executive chairman of Aer Lingus, the Irish carrier, on the 'funding gap', the financial economics of aircraft leasing, and the business model of NYSE-quoted lessor FLY. He says there may be a lack of appreciation of the value of certain types of aircraft assets in the public markets in particular. Fuel and the demand for leased aircraft
 | JOE GILL on a key factor behind the recent burst in financing activity seen amongst aviation finance companies |
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