Jetrader - Spring 2017 - 38

market coverage, revenues and profits.
The maximum take-off weight (MTOW) of
an aircraft offered by manufacturers typically increases as an aircraft fleet gains
operating experience and the manufacturer further develops the engineering
to substantiate such weight increases.
Higher MTOW allows for more payload
and/or fuel to be carried, increasing the
revenue generation and range capability. Higher engine thrust is required to
lift the aircraft into flight. Both the
airframe and the engine manufacturers

charge higher prices for higher weight or
more thrust.
Improved aircraft capability translates
in to higher aircraft value. An aircraft with
improved range can serve longer routes
improving both operating flexibility and the
geographical area that an aircraft can serve.
An aircraft with higher take-off, zero fuel
(ZFW) and maximum landing weights (MLW),
possibly combined with a lower operating
empty weight (OEW) as manufacturers find
ways to remove structural weight, can carry
more revenue payload longer distances. An

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38 The official publication of the International Society of Transport Aircraft Trading
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appraiser needs to understand aircraft performance parameters, payload-range curves,
aircraft weight statements and other operating criteria that bear on an aircraft models'
capability and value.

Technology's Impact on
Aircraft Values
Rapidly and constantly evolving aircraft
technology has an impact on marketability
and values, particularly when technology
is transitional, such as the shift from analogue to digital systems. While technology
evolves consistently, it may be integrated
or have an impact on a step basis, particularly when change is mandated by new
regulatory requirements, such as when in
the Federal Aviation Administration (FAA)
mandated compliance with Stage 3 noise
standards (EASA Chapter 3) as of 1 January
2000. While Stage 3 (Chapter 3) technology changes were driven by mandated
regulatory change, in contrast, Stage 4
(Chapter 4) noise regulation standards
follow existing technology, effectively
making the new standard to be at the
then-current new aircraft production
noise levels.
The transition from an analogue world
to a digital world has positively impacted
avionics and aircraft management systems, as well as revolutionizing inflight
entertainment systems (IFE). Technological
evolution has reduced cockpit crew size
to two pilots, leaving in the dust of history, navigators, flight engineers and radio
operators. There are serious discussions
about the potential to go to single pilot
operations and even pilotless commercial
operations. Changes in technology can significantly impact aircraft values.
From a valuation perspective, technological changes manifest themselves
in changes in operating costs through
improved operating efficiency and lower
maintenance costs. Technological change,
such as lower cabin pressure attitude and
higher cabin humidity, passenger wireless
connectivity and entertainment systems
can influence a passenger's choice of airline
and aircraft and positively impact operator
revenues. Improved materials and design
technology have resulted in tighter seat
pitch (the space between rows of seats),
increasing passenger density, improving
airline revenues and potentially impacting
aircraft value.


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Table of Contents for the Digital Edition of Jetrader - Spring 2017

A Message from the President
Calendar/News
Q&A: Klaus Heinemann, Partner, HH Kapital BV
Forecast for the Global Economy and Aviation in 2017: Turbulence Ahead
Reaching the Peak: Asian Airline Analysis
ISTAT Finishes the Year Strong with Two Global Events
In the Beginning: The Birth of ISTAT
2017 Finance Outlook: Boeing Forecasts Diverse Sources & Players
Defining Terms: Value, Definitions, Unit Costs & More
Bright Future: An Interview with ISTAT Scholar Ada Lo
From the ISTAT Photo Archives
Aviation History
Aircraft Appraisals
ISTAT Foundation
Advertiser Index
Advertiser.com
Jetrader - Spring 2017 - intro
Jetrader - Spring 2017 - cover1
Jetrader - Spring 2017 - cover2
Jetrader - Spring 2017 - 3
Jetrader - Spring 2017 - 4
Jetrader - Spring 2017 - A Message from the President
Jetrader - Spring 2017 - 6
Jetrader - Spring 2017 - 7
Jetrader - Spring 2017 - Calendar/News
Jetrader - Spring 2017 - 9
Jetrader - Spring 2017 - Q&A: Klaus Heinemann, Partner, HH Kapital BV
Jetrader - Spring 2017 - 11
Jetrader - Spring 2017 - 12
Jetrader - Spring 2017 - 13
Jetrader - Spring 2017 - Forecast for the Global Economy and Aviation in 2017: Turbulence Ahead
Jetrader - Spring 2017 - 15
Jetrader - Spring 2017 - 16
Jetrader - Spring 2017 - 17
Jetrader - Spring 2017 - 18
Jetrader - Spring 2017 - 19
Jetrader - Spring 2017 - Reaching the Peak: Asian Airline Analysis
Jetrader - Spring 2017 - 21
Jetrader - Spring 2017 - 22
Jetrader - Spring 2017 - ISTAT Finishes the Year Strong with Two Global Events
Jetrader - Spring 2017 - 24
Jetrader - Spring 2017 - 25
Jetrader - Spring 2017 - 26
Jetrader - Spring 2017 - 27
Jetrader - Spring 2017 - 28
Jetrader - Spring 2017 - 29
Jetrader - Spring 2017 - 30
Jetrader - Spring 2017 - 31
Jetrader - Spring 2017 - In the Beginning: The Birth of ISTAT
Jetrader - Spring 2017 - 33
Jetrader - Spring 2017 - 34
Jetrader - Spring 2017 - 2017 Finance Outlook: Boeing Forecasts Diverse Sources & Players
Jetrader - Spring 2017 - Defining Terms: Value, Definitions, Unit Costs & More
Jetrader - Spring 2017 - 37
Jetrader - Spring 2017 - 38
Jetrader - Spring 2017 - Bright Future: An Interview with ISTAT Scholar Ada Lo
Jetrader - Spring 2017 - From the ISTAT Photo Archives
Jetrader - Spring 2017 - Aviation History
Jetrader - Spring 2017 - 42
Jetrader - Spring 2017 - 43
Jetrader - Spring 2017 - Aircraft Appraisals
Jetrader - Spring 2017 - 45
Jetrader - Spring 2017 - ISTAT Foundation
Jetrader - Spring 2017 - 47
Jetrader - Spring 2017 - 48
Jetrader - Spring 2017 - Advertiser Index
Jetrader - Spring 2017 - Advertiser.com
Jetrader - Spring 2017 - cover3
Jetrader - Spring 2017 - cover4
Jetrader - Spring 2017 - outsert1
Jetrader - Spring 2017 - outsert2
Jetrader - Spring 2017 - outsert3
Jetrader - Spring 2017 - outsert4
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