CHART 1 This increase in relative volatility for ageing equipment is often the reason why banks will shy away from deals should the lease end correlate with a point when the aircraft is reaching an age where limited market appeal could be of real concern. The values for in-production aircraft fared better but volatility was still a worry when you consider the high in 2007. Lease rates faced significant drops once again as lessors accepted that placing an aircraft earning reserves with a lower short-term lease rental was better than parking it. Charts 2 and 3 illustrate the value and lease rental performance of the A330-200 and 737-800, both built in 1998. mba morten beyer & agnew www.mba.aero international aviation consultants appraisal & valuation aircraft GSE engines parts slots routes CHART 2 washington 2101 Wilson Blvd. Suite 1001 Arlington, VA 22201 USA T el: 1.703.276.3200 Fax: 1.703.276.3201 frankfurt Wilhelm-Heinrich Str.22 61250 Usingen Germany T + 49.60815876081 el: Fax:+ 49.60815876082 tokyo 3-16-16 Higashiooi Shinagawa-ku T okyo 140-0011, Japan T el/Fax: + 81.3.3763.6845 trusted advisors to decision makers As is evident from the graphs, volatility is a reality during boom and bust periods no matter what the age of the program is. While market values and rates dropped in excess of 25 percent from the market high, the actual drop from a perceived base value simulating a balanced market was closer to 10 to 15 percent. Provided that values and rates do not suffer a further sudden drop while the economy CHART 3 Please contact: Stefanie Jung + 1 703 276 3200 ext. 170 sjung@mba.aero © 2011 mba all rights reserved Jetrader 8:41:31 AM 11/30/10 13 504507_Morten.indd 1http://www.mba.aero