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Ascend by Cirium, Expert view

Understand 737 MAX and A320neo values and lease rates

April 15, 2019

In our latest market webcast George Dimitroff, Head of Valuations, Ascend by Cirium covers the latest value and lease rate […]

In our latest market webcast George Dimitroff, Head of Valuations, Ascend by Cirium covers the latest value and lease rate movements, the 737 MAX grounding and expected trends in the widebody market in 2019.

Lease rate changes for A320neo family and 737 Max

All of our lease rate changes are driven by market information and transactions prior to the 737 MAX grounding and they are reflective of supply and demand that was in place prior to the grounding.

Three drivers of lease rate changes:

– A320 family is not experiencing the same issues as the MAX with lessors
– Max 8 lease rates have officially fallen below the 737-800 of the same vintage
– Not as many slots available near term

George presents these points in more detail and adds four additional drivers including the number of unplaced lessor slots and the A320neo premium figure in comparison to the MAX 8 and A320ceo sharklets.

Boeing 737 MAX grounding, our approach when looking at values

Three factors we consider for valuing the 737 MAX:

– The duration of the grounding
– The speed of re-certifications
– The impact of the order book

Listen to the full webcast for more details and to learn about a further two factors that affect our values and uncover how we will adjust our values in a worst-case scenario.


At Cirium, our experts are constantly maintaining and analyzing valuations the industry trusts. To learn more, explore what we can do for lessors. Or read more articles like this.

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