Aircraft Values - Best Regional Aircraft of 2021

Large Regional Jets

Top Performer: Embraer 170LR

 

IBA has seen a resurgence in demand for the smaller members of the Embraer E1 aircraft family, with used examples of the E170 exiting British Airways, Eastern Airways and Aeroméxico Connect, and moving into the fleets of American Airlines & Envoy. This has helped to drive an 8% increase in market value across all vintages. IBA expects a 10-12-year-old E170 to lease for between US$ 77 k and US$ 86 k per month.

 

Top Performer: Bombardier CRJ-900

 

The more modern design of the Embraer E-Jets has reduced the market favourability of the older CRJ aircraft overall, with the CRJ-900 showing an overall market value decrease of -8.3%across all ages in 2021. The expected lease rates that could be achieved for mid-life aircraft have also been adjusted downward, with aircraft in the 10-12 years age range attracting market lease rates in the range of US$ 76 k - US$ 84 k per month.

 

Small Regional Jets (50 seaters)

Top Performer: Embraer ERJ-135LR

 

The smallest ERJ family member, the ERJ-135LR, faced a Market Value decline of 1.4% across all ages in 2020. This represents the smallest decline of aircraft in this class (featuring the ERJ-135LR, 140LR, 145LR and the CRJ-200LR). This was closely followed by the ERJ-145LR, the value of which reduced by 1.6%.

 

Worst Performer: Embraer ERJ-140LR

Image: Derin, Flickr

 

The Embraer ERJ-140LR witnessed a 4.1% drop in market value in 2021, the highest of the category. The largest of the aircraft family, ERJ-145 aircraft are valued between US$ 1.14 and US$ 1.85 million at the close of 2021.

 

Turboprops

Top Performer: Bombardier DHC8 Q400

 

The DHC8 Q400 aircraft showed a 3.3% increase in value in 2021. Whilst the failure of UK based regional carrier Flybe created an oversupply of DHC8 aircraft early in the pandemic, many of these aircraft have transacted and the market appears to be recovering. Some inventory with lessors is clearing, and we have seen placements to Connect Airlines, Cobham, LAM and LuxWing in the first half of 2021.

 

Worst Performer: ATR42-500

 

The ATR72-500 has shown a -3.2% reduction in market value in 2021. Whilst it is an ageing type with reduced demand into continued passenger operation, there have been some recent lease placements into Australia with HeviLift and Pelita Air in Indonesia. Some demand exists in the Passenger to Freighter market, and some lessors' lease rates can attract a premium of US$ 10k+ per month for a -500 freighter when compared to a passenger aircraft.

 

IBA's value opinion is fed by a combination of analysis, research, discussion with the trading and leasing community and comparison with similar data points. We compare, analyse, and scrutinise transactions we see in the market and discuss these amongst our elite appraiser team through regular value forums to ensure our value opinion is relevant, well-researched and of the highest quality.

 

If you have any further questions please contact Mike Yeomans.