Jetrader - May/June 2012 - 19

appraisal

ATR 72-600
Rikard de Jounge Senior Director – Asset Valuation AVITAS, Inc. Tel: +1 703-480-0568 rikard.dejounge@avitas.com

Background
The ATR 72-200 ﬁrst entered service in 1989 as a 15-foot stretch of its smaller sibling, the ATR 42. The initial variant was succeeded in 1992 by the ATR 72-210 and in 1997 by the ATR 72-500. In 2007, ATR announced the launch of the latest generation ATR 72. The ATR 72-600 series aircraft, powered by the PW127M engines, has a new interior cabin with larger overhead bins, lighter and slimmer seats, LED lighting, and a ﬁve LCD screen glass cockpit. The ATR 72 backlog has grown consistently during the past 10 years, and the remaining backlog of 32 -500 series aircraft are manufactured alongside the -600 series with a current backlog of 193 aircraft. The success of the program can be seen in its wide operator base in all major regions, which is comparable to the A320 family. ATR offers four passenger-tofreighter conversion options; approximately 45 of ﬁrst generation ATR 72s are currently deployed as freighters. ATR 72-600 Aircraft Speciﬁcations Wing Span Length MTOW (000 lbs) Capacity Range-70 Pax, LRC (nm) Cruise Speed (kts) Engine
Source: ATR

ATR 72 Regional Distribution Region Africa/Middle East Asia/Paciﬁc Europe Latin America/Caribbean North America TOTAL
Source: OAG Aviation, Jan 2012

Oper. 19 33 39 8 5 104

InSvc. 58 179 194 42 58 531

Firm Ord. 11 85 64 40 25 225

88 ft 9 in 89 ft 2 in 50.3 to 50.7 68 to 74 Pax 825 276 PW127M
Source: OAG Aviation

Market Outlook
As a result of continuous increases in fuel costs, turboprops are again back in favor and ATR has successfully secured a formidable order book of 225 aircraft due to the attractive operating economics of the ATR 72-600. According to ATR, 30 percent of all passengers ﬂown ﬂy less than 300nm. No aircraft serve these missions more cost effectively than a turboprop, and the ATR 72-600 is currently the primary contender. Its only competitor is the Bombardier Q400, a faster

and slightly larger aircraft, which has a backlog of 20 aircraft. As of March 2012, OAG Aviation advertises nine ATR 72s as available for sale or lease compared to less than a handful of aircraft available on the secondhand market in all of 2011. The ﬁnancial troubles of Kingﬁsher, with 25 aircraft in service may result in a short-term oversupply. In reaching our value opinions, we use data on actual market transactions, various analytical techniques, a proprietary forecasting model and our own extensive industry experience.

ATR 72-600 2nd Qtr of Mfr, US$ Millions YOM 2011 2012 Current Market Value $ 17.3 18.8 Base Value 2012 $ 17.1 18.8 Future Base Values as of 2nd Quarter @ 1.50% Inﬂation 2013 $ 15.7 17.3 2014 $ 14.5 16.0 2015 $ 13.5 14.7 2016 $ 12.4 13.7 2017 $ 11.6 12.6 2018 $ 10.8 11.8 2019 $ 10.0 10.9 2020 $ 9.3 10.2 2021 $ 8.7 9.4 2022 $ 8.1 8.8

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. Jetrader 19

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Jetrader - May/June 2012

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