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Wanted: a lot of 757s
01 November 2006
Nearly two years after production ended, the 757 is still in demand. Geoff Hearn looks at whether the aircraft is likely to remain a good investment.
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Boeing; 757
US freight operator FedEx's announcement that it will convert nearly 90 757-200 passenger aircraft to freighters raises an important question about this grand move: where will the aircraft come from?
The 757 fleet is ageing and the aircraft is a proven freighter, but there is no direct replacement among the current generation of single-aisle passenger aircraft, so many airlines are hanging on to 757s. The aircraft's range means it can operate on routes more normally associated with widebody aircraft. As such, it remains an attractive aircraft for passenger services, with the consequent impact on aircraft values.
Bryson Monteleone, managing director of US appraisers Morten Beyer and Agnew, advises caution. He says: "The market is very turbulent with cargo conversion facilities scrounging for available aircraft while passenger airlines continue to hold on to them until a suitable alternative appears. There is a danger of overpaying for less-desirable aircraft."
Steve Jarvis, managing...
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