Air Partner’s Tony Whitty Comments on the Regional Aircraft Sales and Leasing Market

Please note the view expressed in this post are those of the member posting and not necessarily of the BBGA

After a busy 2017, Tony Whitty, Managing Director at Air Partner, comments on what the Group’s Remarketing team is currently seeing in the regional airliner market, with further details on specific models below.

“Over the last few years, we have remarketed several different types of regional aircraft, including E195s, E170s, E145s, ATR72s, DHC8s and CRJs. In recent years, new lessors have arrived in this sector in significant numbers. The influential players, such as Nordic Aviation Capital, Falko and Avmax, own large numbers of a range of aircraft types, and so airlines no longer need to worry about arranging finance to acquire regional models.”

REGIONAL AIRCRAFT MARKET APPRAISAL

ATRs: Air Partner Rating C+

Oversupply of new ATR72-600s from the manufacturer to lessors
-600 lease rates dropped 60,000 USD in last two years
Newer ATR72-500s dropping in value by 10+% per annum
-200s and older -500s attractive for freight conversion
Fedex order for up to 50 ATR72-600s and Silver Air’s firm order for 20 ATR42-600s are significant

DHC8s: Air Partner Rating C+

Orders continue but for small numbers of Q400 aircraft (the only remaining production model)
Many used Q400s been on the market for 1+ years
-100/200/300s still niche STOL (short take-off and landing) aircraft types that have very limited competition but they are getting old

E-Jets: Air Partner Rating B-

E145s trading well in used market but at low values – 70 operators worldwide
E175 popular in USA
E170 a niche aircraft – where will the Saudia aircraft end up?
Ex-TACA, Flybe, Borajet, Kalstar and Air Canada E190s and E195s proving slow to place. Very attractive manufacturer and/or export finance for new orders hurts the market for newer used aircraft
Several E170s and E190s have been parted out

CRJs: Air Partner Rating C+

CRJ200 values holding above appraisers’ values
CRJ200 cargo conversions steady
CRJ700 very niche but USA-dominated due to scope clause
CRJ900 – successful USA aircraft
CRJ1000 – only four operators

Fokker 50: Air Partner Rating B-

Niche aeroplane with concern over support
Good value, rugged construction – only four advertised for sale
Freighter conversions in limited numbers – expensive conversion cost

Fokker 70/100: Air Partner Rating B

Operator base has moved from Europe with many aircraft going to Australia and Papua New Guinea
Good value with great cabin that is still relevant
New operators in market, e.g. Tus, Air Niugini and Alliance Airlines (40)
Low capital cost ideal for low utilisation flying
Readily available green-time engines

Saab 340/Saab 2000: Air Partner Rating C+

Only around 60 S2000s built – largely been a European operated aircraft
Competition from ATR, CRJ200 and E145 restricted S2000 sales
Nearly 400 S340s built initially, with sales success in the USA with AMR Eagle
Good used market activity over the years with Rex Australia now operating 52 S340s
Ultimately the S340 has been replaced with 50 seat aircraft with better operating economics

MA60/MA700: Air Partner Rating C-

108 MA60s have been delivered to 26 operators in 18 countries
185 orders for the MA700 by 11 operators – deliveries scheduled to start in 2021
Poor safety record
Attractive pricing and financing likely to be key to the success to date
Interesting in comparison to where the manufacturers of the Sukhoi Superjet, C Series and MRJ currently stand in terms of operator base, orders and geographical penetration

Air Partner’s Aircraft Remarketing division has got 2018 off to a strong start, announcing last week the sale of a 2009-vintage Beechcraft King Air 200 on behalf of Air HH Luftverkehrsgesellschaft mbH Privat Jets. This transaction follows a successful 2017, in which the division won and fulfilled a number of mandates. Notable transactions included the sale and delivery of a third Kenya Airways B777-200ER aircraft to Omni Air International; the sale of two B747-400s to Jet Midwest Group on behalf of China Airlines; and the sale of two of Kenya Airways’ B737-700 aircraft, which were then leased back to Kenya Airways for continued operation. The team was also appointed by Saudi Arabian Airlines as its exclusive remarketing agent in respect of 15 Boeing 777-200ERs. It currently has a number of other mandates on a variety of aircraft, including a B787, several ERJ145s and an ATR72-500.

ENDS

Enquiries:


TB Cardew		T. +44 (0)20 7930 0777
Tom Allison		M. +44 (0)7789 998 020
Alycia MacAskill		M. +44 (0)7876 222 703

About Air Partner Remarketing Services

Air Partner Remarketing Services is a specialist aircraft remarketing agent which acts for airlines and other aircraft owners, such as banks, operating lessors, manufacturers, insolvency practitioners and high net worth Individuals, to dispose of their surplus aircraft including commercial jets, turboprops, helicopters or private jets, either by arranging a sale or lease of the aircraft. It also advises clients on the acquisition of aircraft and their fleet management process. Former and current clients have included Cyprus Airways, Kenya Airways, China Airlines, Saudia, Flybe, British Midland, Cargolux, Daimler-Chrysler, KLM, DVB Bank, Halifax Bank of Scotland, Investec Bank and Rolls-Royce Aircraft Management. www.airpartner.com/en/our-services/remarketing

About Air Partner

Founded in 1961, Air Partner is a global aviation services group that provides worldwide solutions to industry, commerce, governments and private individuals. The Group has two divisions: Broking division, comprising air charter broking and remarketing; and the Consulting & Training division, comprising the aviation safety consultancies, Baines Simmons, Clockwork Research and SafeSkys, as well as Air Partner’s Emergency Planning Division. For reporting purposes, the Group is structured into four divisions: Commercial Jets, Private Jets, Freight (Broking) and Consulting & Training (Baines Simmons, Clockwork Research, SafeSkys and Air Partner’s Emergency Planning Division). The Commercial Jet division charters large airliners to move groups of any size. Air Partner Remarketing, which is within the Commercial Jet division, provides comprehensive remarketing programmes for all types of commercial and corporate aircraft to a wide range of international clients. Private Jets offers the Company’s unique pre-paid JetCard scheme and on-demand charter. Freight charters aircraft of every size to fly almost any cargo anywhere, at any time. Baines Simmons is a world leader in aviation safety consulting specialising in aviation regulation, compliance and safety management. Clockwork Research is a leading fatigue risk management consultancy. SafeSkys is a leading Environmental and Air Traffic Control services provider to UK and International airports. Air Partner is headquartered alongside Gatwick airport in the UK. Air Partner operates 24/7 year-round and has 20 offices globally. Air Partner is listed on the London Stock Exchange (AIR) and is ISO 9001:2008 compliant for commercial airline and private jet solutions worldwide. www.airpartner.com

Lucy Featherstone

Senior Account Executive

TB Cardew, 5 Chancery Lane, London EC4A 1BL

Telephone: +44 (0)20 7930 0777

Mobile: +44 (0)7789 374 663

lucy.featherstone@tbcardew.com

London | Johannesburg

www.tbcardew.com | Twitter: @TBCardew

Paul Cremer

My name is Paul Cremer, and this marks my 42nd year working within the business and general aviation industry. Over this time, I’ve had the privilege of overseeing a diverse array of sector activities, ranging from aircraft charter and management to air ambulance services, ground operations, air traffic control, airport management, technology implementation, and the outsourcing services I currently manage.

In my role focused on delivering advisory, technology, and outsourcing services to aviation customers, I handle a wide spectrum of responsibilities. This includes overseeing International Trip Support, Operations Control Centre Services (OCC), Continuing Airworthiness Management Service (CAMO), Airworthiness Reviews, ARC Services, Aircraft Delivery and Re-delivery Support Services, Maintenance Coordination Services including AOG, Tech Ops (Maintenance Control Centre), and managing myairops software products. As the Head of Aviation Delivery, I lead the customer-facing delivery of Technology & Outsourcing products and services for the market, drawing upon a wealth of knowledge, expertise, and industry connections within Gama Aviation’s Technology and Outsourcing Strategic Business Unit.

My journey into Business and General Aviation began during my teenage years while still in school. I was fortunate enough to be welcomed into the industry, starting at a flying club, and later working at the Air Traffic Services Unit at Blackbushe Airport. There, I maintained the ATC Movement Logs in the Control Tower during weekends, solidifying my passion for aviation. Upon completing my schooling, I seized opportunities at Fairoaks Airport, where I began as Ground Crew while pursuing my Aerodrome Flight Information Service Officer’s license. Advancements in my career led me to the role of Air Traffic Services Manager.

Since joining Gama Aviation in 1996, I’ve held various positions, including Operations Manager (Post Holder), Operations & Commercial Manager, Commercial Manager, Operations Delivery Manager, Head of Business Aviation Delivery, and currently, Head of Aviation Delivery. This role encompasses Gama Aviation Group’s Gama Aviation, myairops, and FlyerTech companies.

In 2023, I was honoured to be invited to serve as the Chair of the Operations Working Group for the British Business & General Aviation Association. This opportunity allows me to contribute to industry initiatives within BBGA’s membership of nearly 200 industry companies, focusing on challenges such as regulatory compliance, Air Services Agreements, technological advancements, workforce development, operational matters, and sustainability.

Marc Bailey

Marc Bailey has spent his entire career in aviation and has worked in most areas of Aviation Services with scheduled airlines, MRO’s, military contract support and latterly with associations, government, and its agencies.

Marc represents your position in Europe (even post Brexit) – as President of ECOGAS (European Council of General Aviation Support) which maintains a voice with EASA. All the major member states are represented on the ECOGAS board. With EASA restructuring its meetings with industry, ECOGAS is now well positioned to represent our position in all areas following industry partnerships with the European Independent Maintenance Group and with ARPAS the new drone and autonomous association.

Marc is chair of the UKASF (United Kingdom Airworthiness Strategic Forum) as part of an initiative to develop Aviation Services across all aviation activities. The UKASF pulls together airlines, MROs, Rotary, Drones, and commercial GA bodies to work with CAA and DfT. The objective is for industry to take the lead to drive strategic issues to benefit all parties. We are well positioned after four years to continue our good work and with the re-established role of Chief Surveyor in the CAA we have a good focal point to do this.

Marc chairs the CAA Finance and Services Forum which allows industry in the UK to discuss in the financial plans for the CAA and the value for money delivered by those funds paid by industry. This is a new and valuable new platform for all parties.

Under recent developments Marc has formed an alliance with, ARPAS, AOPA, BHA and BBGA so that we can strengthen our voice under a joint ‘GA 4 Biz’ banner. This alliance is working to do everything possible to represent the industry’s business interests with UK government and to help realise the Government’s desire to make UK General Aviation a Global Leader in a post Brexit environment. GA4Biz – GA4Biz

The next Generation initiatives with industry and government have continued to develop with the retention platform now evolving into the “Aviation Skills Recruitment Platform”. The platform now not only offers a vehicle for those offering and seeking posts in aviation, it also provides pathways with its TalentView portion seeking to provide pathways for new entrants into our sector. The recruitment platform is being further developed to include training opportunities across a wide range of providers, from government agencies through academic bodies. Getting our next generation activities right in the UK over the next couple of years is our single most important issue which we in aviation must grab with both hands. Marc is playing a central role to help develop many of these channels.

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