Jetrader - May/June 2008 - 24

Boeing 777-300ER MBA | morten beyer & agnew Stephen P. Rehrmann ATP/FE, Vice President – Appraisal Group appraisal BACKGROUND The 777-300ER entered service in 2004, with the ﬁrst delivery going to Air France in April. The twin-engine 777-300ER is the extended range version of the 777-300 with increased maximum takeoff weight of up to 775,000 lbs and a maximum range of 7,930 nautical miles. The highest thrust GE90, the -115B, is the exclusive offering on this model. The new technology and operating economics of the 777 have made it one of the most popular widebody aircraft of all time with 1,044 orders and 687 in service, to date (all models). Current and Future Market Outlook: The success of the 777 family has vindicated Boeing’s decision to offer a twin-engine long haul product. Since the introduction of the 777-300ER, all orders for the 777-300 have been converted to the Extended Range variant. Its current direct competitors are the A340-500/-600 on range and capacity. The 777-300ER has become increasingly popular among Asian and Middle Eastern carriers with Cathay Paciﬁc (26) and Emirates Airlines (40) topping the order count for their respective regions. Current backlog is 210 aircraft. As air trafﬁc maintains its steady increase and the current shortage of widebody lift continues, demand for the 777-300ER will remain strong in the future. With fuel hovering around the $90/barrel mark, the 777-300ER will be competitive until the next generation aircraft enter service. However, the A350XWB and the envisioned 787-10 will impact 777-300ER residual values after they enter service and raises the question of a Boeing 777 replacement to counter the A350XWB, currently expected in the 2013-2014 timeframe. 777-300ER Fleet Statistics Orders 328 Cancellations 1 Deliveries 117 Backlog 210 Destroyed/ Retired 0 Not in Service/Parked 0 Active Aircraft 117 No. of Operators 13 No. of Leased Aircraft 57 No. of Owned Aircraft 60 Average Daily Utilization (Hrs.) 8.6 Average Fleet Age (Yrs.) 1.4 777-300ER Speciﬁcations Max. Taxi Weight (lbs.) 777,000 Max. Takeoff Weight (lbs.) 775,000 Max. Landing Weight (lbs.) 554,000 Operating Empty Weight (lbs.) 370,000 Max. Zero Fuel Weight (lbs.) 524,000 Max. Structural Payload 154,000 Fuel Capacity (USG) 47,890 Max. Design Range (nm) 7,930 Engine Type GE90-115B Conﬁguration: 3-Class 365 pax Wing Span 212’ 11” Length 242’ 4” Boeing 777-300ER – GE90-115B Current Market Price (all ﬁgures in million US$) 2004 124.74 2005 130.96 2005 129.98 125.50 120.88 116.15 111.35 106.48 101.59 96.69 91.80 86.95 82.17 2006 137.49 2006 136.81 132.40 127.84 123.13 118.32 113.42 108.46 103.48 98.49 93.51 88.57 2007 144.35 2007 143.99 139.69 135.19 130.53 125.73 120.81 115.81 110.75 105.66 100.56 95.48 2008 151.55 2008 151.55 147.38 142.97 138.37 133.60 128.68 123.65 118.53 113.35 108.14 102.92 Base Value 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2004 123.50 118.95 114.30 109.57 104.79 99.97 95.14 90.34 85.57 80.86 76.23 The aircraft values stated herein are the product and property of independent third party sources, and ISTAT neither approves nor endorses the information contained herein or the use thereof for any purpose whatsoever. Information current as of 4/1/2008. 24 The ofﬁcial publication of the International Society of Transport Aircraft Trading

Jetrader - May/June 2008

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