Jetrader - Fall 2014 - 54

appraisal

Boeing 737-900ER

Thomas Burke
ISTAT Certified Appraiser
Morten Beyer & Agnew (www.mba.aero)
Tel: +1 703-276-3200
tburke@mba.aero

Background
The Boeing 737-900ER is an extended range version of the
737-900. The 737-900 was a stretched version of the 737-800
but was limited in passenger capacity by the number of exits.
Production of the 737-900 ran just five years from 2001 to 2005.
The 737-900ER incorporated additional emergency exit doors and
a flat rear pressure bulkhead that permitted increased interior
accommodations up to 180 passengers in a typical two-class
configuration or up to 215 passengers in a single-class configuration. The 737-900ER has the same external dimensions as the
737-900 but features an increased maximum takeoff weight of
187,700 pounds, strengthened landing gear and wing structures,
up to two optional auxiliary fuel tanks, and winglets. With the
installation of two auxiliary fuel tanks and winglets, the 737-900ER
can carry 180 passengers up to 3,265 nautical miles.
The 737-900ER entered service in 2007 with Lion Air and is
still in production with a healthy backlog of almost 300 units.
As of April 2014, there were 241 active aircraft in service with
15 operators. In terms of operators, United Airlines and Lion
Air account for 65 percent of the active fleet. When divided by
region, North America and the Pacific Rim contain 89 percent
of the active aircraft, Europe and Asia make up 10 percent and
the remaining 1 percent is held in the Middle East. According to
Airfax, as of June 2014, there have been no Boeing 737-900ER
aircraft available for sale or lease since August 2013.

The aircraft has not seen as much interest from operators who
have moved toward larger gauge equipment as its competitor, the
A321. However, a relatively small operator base with a few large
operators, such as United and Lion Air, does provide isolation from
ongoing volatility provided they remain healthy in the mediumterm. The long‑term outlook will be shaped by the presumed success of the 737 MAX. While not a true clean sheet replacement,
the modified variant represents a break in production and the
last of the 737-900ERs to be manufactured will suffer the most
from a value perspective. However, no technical obsolescence
is expected for the near future as result of the 737 MAX entry
into service.
Fleet Status
Ordered

85

Net Orders

534

Backlog

292

Delivered

242

Destroyed/Retired

0

Not in Service/Parked

1

Active Aircraft

The short- to mid-term outlook for the 737-900ER is favorable,
even prior to the Entry Into Service (EIS) of the 737 MAX variants.

619

Cancelled/Transferred

241

Number of Operators

Market Outlook

737-900ER

15

Source: ACAS June 2014

Boeing 737-900ER Values as of July 2014, US$ millions
Year of
Build

Current
Market
Value

2007
2008
2009
2010
2011
2012
2013

31.0
33.0
35.2
37.5
40.5
43.6
47.0

32.9
34.8
36.8
38.9
41.5
44.4
47.4

2014
2015
2016

50.7

50.7

Current Base
Value
2015

Future Base Values at 2.0% Inflation
2016

2017

2018

2019

2020

2021

2022

2024

2026

2028

2030

2032

2034

31.2
33.1
35.0
37.1
39.8
42.6
45.6

29.5
31.3
33.3
35.4
37.9
40.7
43.7

27.7
29.6
31.5
33.6
36.1
38.8
41.7

26.0
27.8
29.7
31.8
34.2
36.9
39.7

24.3
26.1
28.0
30.0
32.4
34.9
37.7

22.7
24.4
26.3
28.3
30.5
33.0
35.7

21.1
22.8
24.6
26.5
28.7
31.1

19.6
21.2
22.9
24.8
26.9
29.2

16.7
18.2
19.8
21.5
23.4
25.5

14.1
15.4
16.9
18.5
20.2
22.1

11.7
12.9
14.2
15.6
17.2
18.8

9.6
10.7
11.8
13.1
14.4
15.9

7.8
8.7
9.7
10.8
12.0
13.3

6.3
7.0
7.9
8.9
9.8
10.9

48.8
51.7

46.8
49.7
52.2

44.8
47.7
50.2

42.8
45.6
48.0

40.7
43.4
45.9

38.6
41.3
43.7

33.7
36.5
39.1
41.5

31.7
34.4
36.9
39.2

27.8
30.3
32.7
34.8

24.1
26.4
28.6
30.6

20.7
22.7
24.7
26.5

17.5
19.3
21.0
22.7

14.7
16.2
17.7
19.2

12.1
13.5
14.8
16.1

The aircraft values stated herein are the product and the property of independent third-party sources, and ISTAT neither approves nor endorses the
information contained herein or the use thereof for any purpose whatsoever.

Aircraft Specifications: CFM56-7B26 Engine, 187,700 lb MTOW
54 The official publication of the International Society of Transport Aircraft Trading


http://www.mba.aero

Jetrader - Fall 2014

Table of Contents for the Digital Edition of Jetrader - Fall 2014

A Message from the President
Calendar/News
Reach for the Stars
Beauty Contest
Boeing’s Current Market Outlook for 2014
Aircraft Recyclers Debate the Coming ‘Tsunami’ of Retired Aircraft
Engine Support Plans Shift Market
The Second Life of Aircraft: Does It Still Exist?
Restructuring Aircraft Leases in Bankruptcy
Aviation History
Aircraft Appraisals
ISTAT Foundation
Advertiser.com
Advertiser Index
Jetrader - Fall 2014 - cover1
Jetrader - Fall 2014 - cover2
Jetrader - Fall 2014 - 3
Jetrader - Fall 2014 - 4
Jetrader - Fall 2014 - 5
Jetrader - Fall 2014 - 6
Jetrader - Fall 2014 - A Message from the President
Jetrader - Fall 2014 - 8
Jetrader - Fall 2014 - 9
Jetrader - Fall 2014 - Calendar/News
Jetrader - Fall 2014 - 11
Jetrader - Fall 2014 - Reach for the Stars
Jetrader - Fall 2014 - 13
Jetrader - Fall 2014 - 14
Jetrader - Fall 2014 - 15
Jetrader - Fall 2014 - Beauty Contest
Jetrader - Fall 2014 - 17
Jetrader - Fall 2014 - 18
Jetrader - Fall 2014 - 19
Jetrader - Fall 2014 - 20
Jetrader - Fall 2014 - 21
Jetrader - Fall 2014 - 22
Jetrader - Fall 2014 - 23
Jetrader - Fall 2014 - 24
Jetrader - Fall 2014 - 25
Jetrader - Fall 2014 - 26
Jetrader - Fall 2014 - 27
Jetrader - Fall 2014 - Boeing’s Current Market Outlook for 2014
Jetrader - Fall 2014 - 29
Jetrader - Fall 2014 - 30
Jetrader - Fall 2014 - 31
Jetrader - Fall 2014 - Aircraft Recyclers Debate the Coming ‘Tsunami’ of Retired Aircraft
Jetrader - Fall 2014 - 33
Jetrader - Fall 2014 - 34
Jetrader - Fall 2014 - Engine Support Plans Shift Market
Jetrader - Fall 2014 - 36
Jetrader - Fall 2014 - 37
Jetrader - Fall 2014 - 38
Jetrader - Fall 2014 - 39
Jetrader - Fall 2014 - 40
Jetrader - Fall 2014 - The Second Life of Aircraft: Does It Still Exist?
Jetrader - Fall 2014 - 42
Jetrader - Fall 2014 - 43
Jetrader - Fall 2014 - Restructuring Aircraft Leases in Bankruptcy
Jetrader - Fall 2014 - 45
Jetrader - Fall 2014 - 46
Jetrader - Fall 2014 - Aviation History
Jetrader - Fall 2014 - 48
Jetrader - Fall 2014 - 49
Jetrader - Fall 2014 - 50
Jetrader - Fall 2014 - 51
Jetrader - Fall 2014 - 52
Jetrader - Fall 2014 - Aircraft Appraisals
Jetrader - Fall 2014 - 54
Jetrader - Fall 2014 - 55
Jetrader - Fall 2014 - ISTAT Foundation
Jetrader - Fall 2014 - 57
Jetrader - Fall 2014 - Advertiser Index
Jetrader - Fall 2014 - cover3
Jetrader - Fall 2014 - cover4
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