Jetrader - Spring 2017 - 45

Bombardier CRJ700
Kim Seward
Manager - Asset Valuations
ISTAT Certified Appraiser
Morten Beyer & Agnew

The Canadair Regional Jet 700 ("CRJ
700") made its first flight on 28 May
1999, and was revealed to the public at
the July 2000 Farnborough International Air
Show. Design work on the CRJ 700 began in
1995, with the success of the CRJ100/200
being the main driving force behind the
new variant. Initially designated CRJ-X by
the Advisory Panel overseeing the project,
the CRJ 700 was fitted with re-designed GE
CF34-8C1 engines that provided 13,790lbs.
of thrust. Maximum seating for the CRJ 700
is 78, although typical seating is closer
to 70 seats. The 700 is the smallest variant of the CRJ family aircraft currently in
production. First deliveries of the aircraft
were to Brit Air in February 2001, and then
to Horizon Air and Lufthansa Cityline in
May 2001.

Source: redbook.aero

Overview

CRJ-700ER Values as of January 2017 (U.S. $ Million)
Current Current
Future Base Value (at 2.0% inflation)
Year of Market Base
2018
2019
2020
2021 2022 2023 2024 2025 2026 2027
Build
Value
Value
2001
6.80
7.32
6.60 5.93 5.32 4.76 4.24 3.77 3.35 2.96 2.61 2.30
2004
8.64
9.21
8.37 7.59 6.86 6.18 5.56 4.99 4.46 3.98 3.54 3.14
2007
10.97
11.58 10.62 9.70 8.85 8.04 7.29 6.59 5.94 5.34 4.79 4.28
2010
14.06
14.58 13.47 12.41 11.41 10.46 9.56 8.71 7.92 7.18 6.49 5.85
2013
17.89
18.30 17.05 15.84 14.68 13.56 12.50 11.49 10.53 9.62 8.77 7.97
2017
24.60
24.60 23.38 21.99 20.61 19.25 17.94 16.67 15.44 14.27 13.15 12.09
Values assume GE CF34-8C1 engines, MTOW 75,000 lbs. Values reflect half-life except for new build, which are full-life.
Source: redbook.aero

Market Outlook
The CRJ 700's introduction to the market was timely, particularly for the North
American market. Following Northwest
Airlines' filing for Chapter 11 bankruptcy
in 2005, many of the pilot unions' Collective
Bargaining Agreements ("CBA") in North
America only permitted up to 76 seats and
MTOW of 86,000 lb. on regional routes.
These circumstances made the CRJ-700 a
popular choice for U.S. regional carriers
to replace 50-seat aircraft. However, the
CRJ-700 did not find many orders outside
the U.S. and currently faces significant
remarketing challenges, which would compound if all the U.S. carriers were to put the
aircraft into the market at the same time.
Bombardier's competition in the 70-seat
space comes largely from Embraer's E170,
and to some extent the Fokker 70, the
older 70-seat predecessor. The E-Jet family
is currently seeing more popularity on a
global scale, spanning a wider range of
variants. In the long-term, mba expects
the aircraft to continue to depreciate in
value, with the main reason being the
market's tendency for up-gauging aircraft
as well as demand growing for the newer
E-jet family.

In the short-term, values for the CRJ700 series of aircraft are somewhat supported by their large in-service base
with North American regional carriers
and their protection by scope clauses.
With the same carriers still in the process
of phasing out smaller 50-seat variants,

the CRJ-700 values will be insulated in
the near to mid-term. However, the CRJ700 may face competitive pressures if a
smaller MRJ variant is delivered in significant numbers or if scope clauses are
renegotiated and push regional carriers
to larger aircraft.

We're looking for a few good engines.

Life Cycle Solutions© for monetary recovery

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WE SUPP
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Jetrader * Spring 15/12/16
2017 45
8:35 PM


http://www.redbook.aero http://www.redbook.aero http://www.internationalaircraft.com http://www.internationalaircraft.com

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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